Determinants of Labor Underutilization of College Graduate Youth in Local Labor Markets: A Multilevel Logistic Modeling Approach

Lee Young Kyeong; Ye Seul Choi; Kim， Chanyong; Lim,Up

doi:10.15793/kspr.2016.91..004

The purpose of this study is to examine the determinants on labor underutilization of college graduate youth in the local labor markets in Korea by employing a multilevel logistic model. We focus on the labor underutilization of college graduate youth aged between 20 to 34 and use local labor market areas (LLMAs) as spatial units of analysis. There have been a plethora of research to raise the need to account for not only those people who are traditionally unemployed, but also individuals who are underemployed and those who are hidden-unemployed workers. To identify the determinants on labor underutilization of college graduate youth in the local labor markets in Korea, this study applies a broad employability framework to an understanding of labor underutilization which leads to the risk of underutilization as a function of individual characteristics, personal characteristics, and the impact of local labor market characteristics. The multilevel logistic analysis finds that the labor underutilization of college graduate youth is associated with a range of individual characteristics and personal circumstances together with the characteristics of the local labor markets in Korea. These results imply that it is necessary to introduce policies for not only individual level such as providing occupational training or information about employment but also local labor market level like creating regional jobs to reduce the labor underutilization of college graduate youth.

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