In this article, we divided workers into three categories of educational status according to the compatibility of the individual educational attainment with the educational training required for the surveyed job:“adequately educated,”“over-educated,”and“under-educated.”Using the 11,951 full-time working male employees aged 15-64 taken from the prime data of“Human Resources Survey In Taiwan: 1992,”we applied regression analysis dealing with wage differentials and formulated a multinomial logit model in order to analyze the characteristics of the Taiwan labor market. From the model we came to the following observations:
1.By definition, 4,234 persons （or 27.15%） are in the adequately educated category; 4,473 （or 37.43%） are over-educated; and 3,244 （or 27.15%） are under-educated. Obviously, the workers do not fit or match well for the required educational status.
2.The human capital theory says that the more education one receives, the higher wage one earns. We therefore infer that the higher educated workers should earn higher pay than their lower-educated counterparts. The wage rate of the over-educated is relatively lower than their adequately-educated counterparts by 5.5%; however, undereducated may earn less due to their lower educational level, yet they are earning 12.47% higher in terms of relative wages than those ""adequately educated."" It is therefore concluded that the relative wage rates for the under-educated are higher than the adequately-educatedand the adequately educated are better paid than the over-educated in relative terms.
3.Generally Speaking, the over-educated workers are less experienced in the labour market because of their longer years of receiving higher education. On the contrary, the under-educated, though with a lower educational background, turn out to be rather experienced in working places.
4.The government sector is apt to be overwhelmed with over-educated employees, while the private sector is apt to have more under-educated employees. Apparently, the shortened working years of the under-educated indicates that, on average, those workers are Staying at their jobs for the same work much shorter and tend to be unstable, changeable or unsteady with a higher turn-over rate in the labor market. The turn-over rate of the over-educated is not significant enough to judge that they face the same unstability or changeability as the under-deucated in the labor market.
5.In terms of the occupational classification, those with higher educational requirements or attainment are less likely to be“over-educated""; those required for jobs needing lower education, therefore, are not likely to be under-educated or get into such a situation.