The impact of shifts in supply of college graduates: Repercussion of Educational reform in Korea
Economics of Education Review Volume 15, Number 1, ISSN 0272-7757 Publisher: Elsevier Ltd
A shift in Korean education policy in 1980 suddenly increased the number of college entrants by 30% and reduced the wages of young college graduates relative to the wages of young high school graduates. The relative wages of older college graduates, however, actually increased slightly. Moreover, the substitutability of high school for college workers must be much higher in Korea than in the U.S., where more modest changes in relative supply is associated with larger changes in relative wages. The hypothesis that technology changes are more complementary with highly educated workers than with less educated workers is also tested. The results imply that technology changes in Korea during the 1980s increased the relative demand for more educated workers, especially those with college degrees.
Choi, K.S. (1996). The impact of shifts in supply of college graduates: Repercussion of Educational reform in Korea. Economics of Education Review, 15(1), 1-9. Elsevier Ltd.