With respect to educational and skill mismatches, 61.0% have an optimum level of education whereas approximately 85% have appropriate skills, which indicates that the educational mismatch is more serious than the skills mismatch.
27.0% have been over-educated, with excessive education is more commonly found in older age groups and in smaller companies. In terms of education levels, 39.4% of two-year college graduates have an excessive level of education, which is higher than those with middle school education (26.4%), high school education (24.0%), and those with a four-year college education or higher (23.8%).
The percentage of over-skilled people is about 10% and the cases of excessive skill are more commonly found in younger age groups, among those with higher levels of education, and in larger companies. Among employed people aged 16 to 65, the average monthly wage of people with an optimum level of education is 2.612 million won, as compared to 2.108 million won earned by over-educated people and 2.363 million won earned by under-educated people.
Compared to a person with optimum level of education, an over-educated person is 47.8% less likely to be working in a full-time job, and is 48.7% less likely to be hired in a regular job.
Companies need to carry out recruitment, promotion, and wage compensation practices after reforming their education level-oriented human resource policy to a competency-based one.