A panel study of immigrants' overeducation and earnings in Australia / Le Wen (University of Auckland), Sholeh A. Maani (University of Auckland and IZA) ; IZA Institute of Labor Economics
VerfasserWen, Le ; Maani, Sholeh A.
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, December 2017
Elektronische Ressource
Umfang1 Online-Ressource (24 Seiten)
SerieDiscussion paper ; no. 11216
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
A panel study of immigrants' overeducation and earnings in Australia [0.4 mb]
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The recent literature on overeducation has provided divergent results on whether or not overeducation bears an earnings penalty. In addition, few studies have considered overeducation among immigrants. This paper uses panel data analyses to investigate the match between education and occupation and resulting earnings effects for immigrants from English Speaking, and Non-English Speaking, Backgrounds relative to the nativeborn population in Australia. Based on nine years of longitudinal data, the panel approach addresses individual heterogeneity effects (motivation, ability, and compensating differentials) that are crucial in overeducation analysis. First, we find that immigrants have significantly higher incidence rates of overeducation than the native-born. This probability increases, rather than diminishes, once we control for unobserved correlated effects. Second, based on panel fixed effects analyses there is no penalty for overeducation for ESB immigrants. However, NESB immigrants receive a lower return to required and overeducation compared to the other groups after controlling for individual heterogeneity.

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