Is There an Education Bubble: Theory and Evidence from South Korea

Yosub Jung : Economics

Mentor: Professor David Card

Korean policy makers fear an impending education bubble caused by an over-supply of college graduates. Analysts point to the presence of three million unemployed college graduates as evidence that there are already too many young people with advanced education in Korea. The recent national “Half-Tuition” protests that paralyzed colleges and shut down roads suggests that students and parents are deeply concerned about the “over-education” problem facing Korea. This research project will use comprehensive schooling and labor market data, combined with econometric methods to analyze: (i) the existence of an education bubble, (ii) possible explanations of the phenomenon, and (iii) consequences on the labor market.