High graduate unemployment rate and Taiwanese undergraduate education

Abstract

An expansion in higher education in combination with the recent global economic recession has resulted in a high college graduate unemployment rate in Taiwan. This study investigates how the high unemployment rate and financial constraints caused by economic cutbacks have shaped undergraduates’ class choices, job needs, and future income expectations. Therein, the results obtained from a structural equation model indicate that students whose expenditures were most affected by the economic recession were in greater need of paid employment and were also more likely to take practical and credential courses, which resulted in heavier course loads. Clearly, the economic downturn and the consequential high unemployment rate have directed undergraduates to select more practical education, wherein they now prefer classes that are more likely to increase their employability. The results obtained in this study indicate that people use college courses to enhance their competencies and employability. Finally, regardless of the economic situation, female undergraduates expected significantly lower pay after graduation in comparison to their male counterparts.