Work

Early specialization in higher education and labor market outcomes

Year: 2025

Type: article

Abstract: This study empirically investigates the effects of a policy change in the Republic of Korea that lifted the restriction requiring universities to admit students to groups of departments rather than to single departments. Entry cohorts affected by the policy change had to specify their majors from the beginning of their college education. Using this policy-driven change in the timing of specialization, we find that early specialization lowered wages during early career. This negative wage effect was not driven by selection at admissions or students choosing lower-paying majors and occupations, although graduated majors shifted toward less popular majors. Rather, it is related to their employment in lower-paying industries, which is closely linked to weak local labor demand at the time of graduation. These findings are consistent with less adaptive skills to navigate unexpected changes in the labor market.

Source: Economics of Education Review

DOI: 10.1016/j.econedurev.2025.102707

Authors: Joseph Han, Jae-Yun Lee, Chamna Yoon

Institutions: Korea Development Institute, Korea Advanced Institute of Science and Technology, Seoul National University

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Quality education, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $2,700