Impact of Educational Mismatch on Graduates Employment Prospects in Indonesia: Education and Employment Context
Keywords:
Mismatch Education, College Graduates, Job Satisfaction, Employment Status, Income.Abstract
The research analyzes the mismatch between education and job prospects for graduates in the context of education and employment policies in Indonesia, which is caused by the high level of mismatch between university graduates and labor market needs. Data shows that vertical mismatch reached 53.33% and horizontal mismatch 60.52% in 2019, increasing to 55.2% in 2020, then dropping to 40% in 2021, and 33.50% in 2022 experienced horizontal mismatch, and 40% in 2023 experienced mismatch. This phenomenon indicates the low level of graduate integration with the formal labor market and impacts labor productivity, unemployment, job opportunities, wages, job satisfaction, graduate career mobility, and work motivation. The novelty of this research lies in the analysis of both economic and non-economic aspects of educational mismatch, aiming to provide a comprehensive and relevant perspective on education and employment issues. The methods used are applied logistic regression and OLS with samples aged 18-65 years from the National Labor Force Survey. Independent variables: vertical/horizontal mismatch, education, work experience, age, and gender. Dependent variables: employment status, income, and job satisfaction. The results show that education, gender, and age significantly affect vertical mismatch; education, gender, and work experience affect horizontal mismatch. Education and work experience affect income. Vertical and horizontal mismatches affect job satisfaction. This study assists policymakers in aligning labor market needs with the graduates produced, addressing the gap between graduate expectations and reality.
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