Factors Associated With Vertical and Horizontal Job-Education Mismatches: Insights From University Graduates in Vietnam

Abstract

This study is the first to examine the factors influencing the likelihood of graduates in Vietnam experiencing vertical, horizontal, and full job mismatches. This study employs secondary data from the Labor Force Survey for 2018–2022. Using a multinomial logit model, we identify the key determinants of job mismatch, such as field of study, gender, job sector, and geographic location. Graduates in Education and Pedagogy exhibit a lower likelihood of mismatches than those in almost all other fields. We also observe gender differences, where men were more likely than women to experience all types of mismatches. Additionally, graduates employed in the private and foreign direct investment sectors face higher risks of vertical and full mismatches, whereas urban residents are less likely to experience mismatches than their rural counterparts. Finally, the findings from the doubly robust estimates reveal that a wage penalty is associated with vertical and full mismatches, particularly for women, whereas a horizontal mismatch has a minimal impact on wages.