Educational Wage Differentials in Korea

Abstract

In Korea, the number of new college graduates relative to new high school graduates increased by 159 percent between 1980 and 1985, mainly due to a series of government policies which expanded the college student quota. This enormous rise in the relative supply provides an ideal case for identifying its effect on educational wage differentials. Using the data from 'The Occupational Wage Survey. This paper documents the changes in educational wage structures in Korea from 1971 to 1986. These changes are analyzed using a market clearing model and an alternative non-wage adjustment model.