General Introduction 17
17 General Introduction Excessive competition for university entrance is a very serious problem in Ko- rea1. Since 2004, more than 80% of all high school graduates have gone on to university or junior college. In 2008, this reached 83.8%, although only 76.7% of graduates from all tertiary educational institutions found a job. Only 56.1% of all graduates have a regular job (Korean Educational Development Institute (2009)). The percentage of the unemployed who graduated from a university was 12.6% among all the registered unemployed in 2000, 17.1% in 2004, 19.5% in 2007 and 22.04% in 2009 (Korean Statistical Information Service (2010)). In spite of this fact that more highly educated people suffer more seriously from unemployment, the desire to go to university still keeps growing in Korea. On the other hand, the number of vocational high school graduates continues to fall. Job training is generally neglected in Korea. In human capital theory, as developed by Becker (1962, 1964), a positive corre- lation between earnings and the level of skills − school education and on-the-job training − and the reduction of the unemployment rate with the increasing level of skills was determined to be the stylized fact of human capital investment. However, the current situation in the Korean labor market does not serve to jus- tify this theory of human capital. In studying the contradiction between theory and reality in Korea, this study seeks to uncover some reasons behind the biased behavior of Koreans concerning human capital investment, which focuses too much on university...
You are not authenticated to view the full text of this chapter or article.
This site requires a subscription or purchase to access the full text of books or journals.
Do you have any questions? Contact us.Or login to access all content.