This research is intended to identify and analyze overeducation phenomenon and factors that influenced workers’ income, that is to evaluate difference average of minimum education required by a certain type of job and job-training that work on that type of job as well as other factors that affected workers’ income by using SAKERNAS (National Labor Force Survey) 2007 This research used data of SAKERNAS 2007 that consisted of 502,697 samples. Analysis method used was descriptive analysis and causal analysis that used equation function of income, which was adopted from equation function from research by Safuan and Nazara (2005) by adding several variables in accordance with the research objectives.
Based on the analysis, it was known that the variable of over-education significantly and negatively influenced workers’ income, whereas variable of school length, length of work hours, workers’ age, undereducation, gender, place of work,
course participation significantly and positively affected Indonesian workers’ income. It can be concluded that length of education provided the highest effect on the increase of workers’ income. However, the existence of over-education would decrease Indonesian workers’ income.