Educational expansion and changes in occupational returns to education in Korea

We use data from the Korean Labor and Income Panel Study (KLIPS) conducted in 1998 by the Korean Labor Institute to examine the school-to-work transition across three labor market entry cohorts of Korean men and women. Taking into account the dramatic expansion of educational system and economic changes Korean society has experienced during the last few decades, we develop hypotheses about possible changes in the effects of educational qualifications on first occupational attainment. We first conduct an OLS regression of first occupational prestige scores on education. We then look at the effects of education on the odds of entering an occupational class using multinomial logit models. The results of the two analyses indicate that educational qualifications strongly affect occupational attainment for both men and women. The effects of education, particularly junior college and university, on first occupation have declined across three labor market cohorts for women but not for men.