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Are Immigrants Paid Less for Education?

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  • Lubomira Anastassova

Abstract

This paper is on measuring the gap in returns to education between foreign-born and native workers in France, Germany, and Austria and investigates the extent to which this gap can be explained by a mis-match between the actual and the years of schooling typical for a given occupation. The return to usual years of schooling across different occupations is found to be higher than that for actual years of education. In the case of correctly matched workers who have the ‘typical’ education in a certain occupation, there is no additional reward in earnings for natives compared to foreign workers. Immigrants, however, have significantly lower wage returns in being over-educated than natives but are penalized less for being under-educated.

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Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp406.

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Date of creation: Feb 2010
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Handle: RePEc:cer:papers:wp406

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Keywords: Immigrants; schooling; occupations; earnings; rates of return;

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  1. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, Elsevier, vol. 1(1), pages 75-86, February.
  2. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 20(3), pages 387-418, 07.
  3. H. Battu & P. J. Sloane, 2004. "Over-Education and Ethnic Minorities in Britain," Manchester School, University of Manchester, University of Manchester, vol. 72(4), pages 535-559, 07.
  4. Daniel Munich & Jan Svejnar & Daniel Munich, 1999. "Returns to Human Capital under the Communist Wage Grid and During the Transition to a Market Economy," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 272, William Davidson Institute at the University of Michigan.
  5. Daly, Mary C. & Buchel, Felix & Duncan, Greg J., 2000. "Premiums and penalties for surplus and deficit education: Evidence from the United States and Germany," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 169-178, April.
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