Access to higher education, job mismatch, and wage penalties in Thailand

Abstract

This study considers whether close proximity to higher education institutions increases the probability of earning a bachelor’s degree, overeducation, and horizontal mismatch between degree and occupation. Using data from the 2015 and 2016 Labor Force Survey of the National Statistical Office of Thailand, and jobs data from the Ministry of Labor, we find that individuals living in provinces with research or Rajabhat universities are more likely to earn a bachelor’s degree, but does not increase the probability of being overeducated for their job. In addition, we find larger overeducation penalties in provinces with universities. Finally, qualitative analysis shows that demand for bachelor's degree fields is relatively consistent with the supply of graduates in some regions. But in Bangkok, there is a horizontal mismatch problem.