2. Effects of School Education and Job Training on Earnings in Korea and Germany. A Comparative Study 75
75 2. Effects of School Education and Job Training on Earnings in Korea and Germany. A Comparative Study � � Abstract Researchers in Korea have advanced the hypothesis that the earnings gap be- tween university graduates and those with lower levels of education is higher in Korea than in Germany due to German job training reducing the earnings gap between educational levels. This lessens competition for university entrance in Germany. This study estimates earnings differentials between educational levels and job training for both countries using the 2002-2007 dataset comprised of male employees taken from the ‘Korea Labor and Income Panel Study’ and ‘German Socio-Economic Panel’. Utilizing quantile regression method, this study repudiates the hypothesis: Earning differentials between education levels are higher in Germany than in Korea, although German job training compen- sates for these differentials more strongly than Korean job training. Keywords: School education, Job training, Human capital, Earnings, Korea, Germany 2.1. Introduction According to educational indicators supplied by the OECD, the rate of entry to university for the relevant aged-cohort in the population in 2006 was 35% in Germany. In the same year, this entry rate reached 59% in Korea (OECO (2008)). The relatively high entry rate to university in Korea has its downsides however. While the unemployment rate of university graduates was about 1% in Germany, the percentage of the unemployed who graduated from a university among all the registered unemployed was 12.6% in 2000, 17.1% in 2004, 19.5% in 2007 and 22.04% in 2009 in Korea (Kolja Briedis (2009)...
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