<![CDATA[This study aims to examine qualification mismatch incidence and its effect on labor earning in Indonesia using SAKERNAS 2018. Qualification mismatch is identified using the normative method. A vertical mismatch is obtained by comparing education levels and 1-digit KBJI, while a horizontal mismatch compares 3-digits ISCED-F and 3-digits KBJI. In 2018, there were 4.6% undereducated labor and 27.9% overeducated labor. While the field of study mismatch occurred in 68.4% of the labor force in Indonesia. The effect of qualification mismatch on labor earning is estimated using the ordinary least square method. The results show that there is a 5.24% - 6.24% wage premium for undereducated laborers. Wage penalty of 6.28% -7.52% were suffered by overeducated labors, while those who experienced field of study mismatch of 5.89% -6.80%]]>
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