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A panel data investigation into over-education among tertiary educated Australian immigrants

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Author Info

  • Parvinder Kler

Abstract

Purpose – To investigate the extent of over-education for recently arrived tertiary educated male immigrants in order to ascertain if higher educated immigrants face assimilation hurdles in the Australian labour market. Design/methodology/approach – Using immigrant longitudinal data (LSIA), this paper uses the job analysis/objective method of defining over-education. Also, bivariate probits are used to account for selectivity into employment when studying the determinants of graduate over-education. The over, required and under-education (ORU) earnings function is utilised to find the rates of return to education investment. Findings – It is found that English speaking background (ESB) immigrants to have similar rates of over-education compared to the native born, while only Asian non-English speaking background (NESB) immigrants see a rise in over-education after tighter immigration and welfare policies were introduced. Returns to required schooling are substantial, but the penalty for excess years of schooling is large, though consistent with the stylised facts of over-education. Research limitations/implications – Short time-frame (up to five years) only allows for an investigation of initial assimilation. Originality/value – Using panel data, this paper is the first to study the initial phase of highly educated immigrant assimilation into the Australian labour market from the viewpoint of job matching rather than just employment.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 34 (2007)
Issue (Month): 3 (September)
Pages: 179-193

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Handle: RePEc:eme:jespps:v:34:y:2007:i:3:p:179-193

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Related research

Keywords: Australia; Education; Immigrants;

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Cited by:
  1. Mancinelli, Susanna & Mazzanti, Massimiliano & Piva, Nora & Ponti, Giovanni, 2010. "Education, reputation or network? Evidence on migrant workers employability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 64-71, January.
  2. Massimiliano Tani & Christopher Heaton & Gavin Chan, 2013. "The Wage Premium of Foreign Education: New Evidence from Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(4), pages 395-404, December.
  3. Carroll, David & Tani, Massimiliano, 2011. "Labour Market Under-Utilisation of Recent Higher Education Graduates: New Australian Panel Evidence," IZA Discussion Papers 6047, Institute for the Study of Labor (IZA).
  4. Tani, Massimiliano, 2012. "Does immigration policy affect the education--occupation mismatch? Evidence from Australia," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 38(2), pages 111-141.
  5. Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, vol. 32(C), pages 207-218.

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