Taiwan ranks second globally in terms of share of population with a higher-education degree, with about 60 percent of Taiwanese holding a post-secondary or graduate degree, a survey by the Organisation for Economic Co-operation and Development showed.
The findings are consistent with Ministry of the Interior data, which showed that as of the end of last year, 10.602 million Taiwanese had completed post-secondary education or higher. Among them, the number of women with graduate degrees was 786,000, an increase of 48.1 percent over the past decade and a faster rate of growth than among men.
A highly educated population brings clear advantages. A larger pool of talent could help a country compete in advanced industries and foster innovation. However, Taiwan is experiencing the same challenges faced by many highly educated societies: degree inflation and underemployment.
Degree inflation occurs when employers increasingly require higher academic qualifications for jobs that previously did not demand them. As the number of university graduates grows, degrees become a screening tool, forcing workers to spend more time and money on education for positions that might not truly require such qualifications.
In Taiwan, the trend could be traced to the rapid expansion of higher education beginning in the 1990s, which according to the Brookings Institution was in response to “global competition, domestic political elections and rapid social change.”
Many observers attribute the surge to the government’s amendment of the University Act (大學法) in 1994, which deregulated higher education and allowed universities to expand rapidly.
By the mid-2010s, policymakers had begun to recognize the consequences of the expansion. In 2015, the Ministry of Education tried to close or merge struggling institutions amid declining enrollment. Taiwan’s low birthrate compounded the problem, with university enrollment falling sharply in the past few years.
The result is a growing mismatch between education and employment. It is not uncommon for university graduates to work in retail or service jobs, or doctorate holders to be employed in administrative or clerical roles. Studies by government agencies and academic institutions estimate that about 20 to 30 percent of graduates work in positions that do not require a university degree.
Degree inflation has also coincided with wage stagnation. For much of the 2000s and 2010s, the median starting salary for new graduates was about NT$28,000 to NT$32,000 per month, despite rising education levels. That has reinforced a widespread perception among younger Taiwanese that they are overeducated, but underpaid.
Public opinion reflects this tension. A survey conducted in March 2022 by the Professor Huang Kun-huei Education Foundation showed that 64.5 percent of respondents believed obtaining a university degree is “a costly investment with low returns.” Yet, 70.5 percent still said a university degree remains the primary path to social mobility.
This contradiction suggests that cultural expectations continue to drive university enrollment. Social pressure — from families as well as broader societal norms — often leads young people to believe that a university degree is essential for success.
Some policymakers have begun challenging that assumption. President William Lai (賴清德) has promoted vocational education and encouraged parents to view it as a legitimate alternative to university. At the National Skills Competition in 2023, he urged families to consider technical and vocational schools as viable pathways, saying that Taiwan faces a shortage of skilled workers and that social attitudes often discourage vocational training.
Minister of Education Cheng Ying-yao (鄭英耀) has also emphasized the need to improve trade education, saying that income disparities encourage about 90 percent of vocational high-school graduates to go to university instead of entering skilled trades, a trend that could create imbalances in the labor market.
Industry leaders have voiced similar concerns. At a forum hosted by the Chinese National Association of Industry and Commerce in 2022, business representatives warned that technical and vocational education has become undervalued, despite growing demand for skilled workers.
University education would always be essential for some fields, such as semiconductors, medicine and law, but for those without a clear academic career path — or those who prefer hands-on work — vocational training could offer rewarding and stable careers. Taiwan would benefit from placing greater emphasis on the alternatives. The government should work more closely with industry to highlight career paths in skilled trades and ensure that wages keep pace with inflation.
The goal should not be simply to produce more degrees. It should be to help people find meaningful and rewarding work — whether that requires a university diploma or not.
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