The excessive hierarchy of colleges has generated the overheated
competition for college entrance in South Korea. Many preceding studies
discussed the effect of academic credentials on the labor market such as wage
premium for graduates from prestigious universities, but few have conducted
comprehensive research embracing their non-monetary effects. Using the
Korean Labor & Income Panel Study (KLIPS) dataset, this study finds strong
positive effects of academic backgrounds on both overall life and workplace
satisfaction levels. The satisfaction effects are supported by the different
experience of discrimination in employment, promotion and general social life
according to different educational backgrounds. We also find that the effects
are statistically significant even after controlling for one’s income and job type.