An analysis of the labor market outcomes for graduates from non-major regional universities in 2019 revealed that their real wages are 16.7% lower than those of graduates from universities in the Seoul metropolitan area. Despite previously showing no significant gap in labor market performance, regional universities are now exhibiting signs of declining competitiveness, prompting calls for a restructuring centered around major national universities to develop a regional talent cultivation system.
The Korea Institute for Industrial Economics and Trade (KIET) reported this on September 23 in its study titled 'Current Status and Policy Directions of Talent Development Competitiveness in Regional Universities: Focusing on the Establishment of Regional Talent Development Hubs.'
Using data from the Korean Education Employment Panel, the report found that graduates from non-major regional universities earned 16.7% less in real wages compared to their peers from metropolitan universities. The proportion of those employed in high- and mid-skilled jobs was also 15.3 percentage points lower, with both indicators showing statistically significant differences.
Notably, the wage gap was even larger for students who graduated from high schools outside the capital region and then attended non-major regional universities. Their real wages were 17.6% lower than those of graduates from metropolitan universities, and their employment in high- and mid-skilled jobs was 22.0 percentage points lower.
In contrast, graduates from major regional universities did not show a significant wage gap compared to those from metropolitan universities. Their real wages were only 3.9% lower, and the proportion of high- and mid-skilled job holders was 5.8 percentage points lower, but these differences were not statistically significant.
However, recent trends indicate a decline in competitiveness even among major national universities. A comparison of labor market outcomes using the Korean Labor Panel showed that the wage gap between graduates from non-metropolitan national universities and those from metropolitan universities has widened from 2011-2013 to 2023-2024.
The student enrollment base for regional universities is also weakening. The population of school-age children (ages 6-21) in non-metropolitan areas is projected to decline faster than in the metropolitan area, falling below 2 million after 2038. The net migration of young people moving to the metropolitan area for educational purposes has increased from 10,000 annually in 2014 to 16,000 in 2024.
Disparities are also evident in university competitiveness metrics. An analysis of the 2026 QS World University Rankings revealed that the employer reputation score for major national universities in non-metropolitan areas averaged 10.9 points, about one-sixth of the average score of 62.8 points for the top 10 universities in the metropolitan area. Academic reputation scores were 13.8 points compared to 54.4 points, and international research network scores were 37.8 points versus 56.3 points.
The report recommends that before the competitiveness of regional universities further declines, major national universities should be developed as key hubs for talent cultivation, research and development (R&D), and industry-academia collaboration within their regions. Non-major universities should focus on providing tailored education and specialized training that meets local and industrial demands.
Seong-min Seo, a senior researcher at KIET, stated, "Before the competitiveness of major national universities declines further, we need to rebuild the talent development foundation for the entire region around them. Existing university support programs and R&D initiatives should be integrated and reorganized to align with regional talent development systems and connect with the workforce needs of local growth industries."
* This article has been translated by AI.
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