“Skill mismatches in the EU: Immigrants vs. natives”
AbstractThe objective of this paper is to analyse and explain the factors behind the observed differences in skill mismatches (vertical and horizontal) between natives and immigrants in EU countries. Using microdata from the 2007 wave of the Adult Education Survey (AES), different probit models are specified and estimated to analyse differences in the probability of each type of skill mismatch between natives and immigrants. Next, Yun’s decomposition method is used to identify the relative contribution of characteristics and returns to explain the differences between the two groups. Our analysis shows that immigrants are more likely to be skill mismatched than natives, being this difference much larger for vertical mismatch. In this case, the difference is higher for immigrants coming from non-EU countries than for those coming from other EU countries. We find that immigrants from non-EU countries are less valued in the EU labour markets than natives with similar characteristics, a result that is not observed for immigrants from EU countries. These results could be related to the limited transferability of the human capital acquired in non-EU countries. The findings suggest that specific programs to adapt immigrants’ human capital acquired in home country are required to reduce differences in the incidence of skill mismatch and a better integration in the EU labour markets.
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Bibliographic InfoPaper provided by University of Barcelona, Regional Quantitative Analysis Group in its series AQR Working Papers with number 201310.
Length: 28 pages
Date of creation: Oct 2013
Date of revision: Oct 2013
Immigrant overeducation; vertical mismatch; horizontal mismatch; human capital transferability. JEL classification: J15; J24; J31;
Other versions of this item:
- Sandra Nieto & Alessia Matano & Raul Ramos, 2013. "“Skill mismatches in the EU: Immigrants vs. natives”," IREA Working Papers 201318, University of Barcelona, Research Institute of Applied Economics, revised Oct 2013.
- Nieto, Sandra & Matano, Alessia & Ramos, Raul, 2013. "Skill Mismatches in the EU: Immigrants vs. Natives," IZA Discussion Papers 7701, Institute for the Study of Labor (IZA).
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-LAB-2013-10-25 (Labour Economics)
- NEP-MIG-2013-10-25 (Economics of Human Migration)
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