The Effect of Employment Expansion of Industries in China on Over-Education in the Labor Market
By matching the data from the four waves of CFPS dataset and the employment expansion data of industries at the city level,this paper empirically examines the effect of employment expansion of different sub-industries on the inci-dence of over-education in the labor market from the perspective of human capital demand side.The study finds that the employment expansion of the urban manufacturing industry,median service industry,upper service industry,and monopoly industry can obviously reduce the incidence of over-education in the labor market.However,the employment expansion of the urban nonmanufacturing industry,traditional service industry,and competitive industry can not apparently decrease the likelihood of over-education.The result of mechanism analysis reveals that the employment expansion of the urban manufac-turing industry,median service industry,upper service industry,and monopoly industry can remarkably promote workers receiving more or higher level of education,meanwhile,workers with more or higher level of education also have more op-portunities to enter these industries.So the employment expansion of urban industries reduces the likelihood of over-educa-tion in the labor market by increasing the matching degree between workers and the job positions.The basic policy implica-tion includes that the government should establish a diversified education development system including general education and vocational education.General higher education should further optimize the structure of majors and reasonably plan the recruitment scale.Vocational education should pay more attention to improving both the quantity and quality of the graduates.The government should continue pushing on the transformation and upgrade of traditional industries and strive to develop more job positions that need intermediate or senior-grade skills.
employment expansion of industriesover-educationhuman capital promotingmatching between workers and job positions