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Educational Mismatch: Are High-Skilled Immigrants Really Working at High-Skilled Jobs and the Price They Pay if They Aren’t?

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Author Info

  • Chiswick, Barry R.

    ()
    (Department of Economics, University of Illinois at Chicago)

  • Miller, Paul W.

    (Business School, University of Western Australia)

Abstract

This paper examines the incidence of the mismatch of the educational attainment and the occupation of employment, and the impact of this mismatch on the earnings, of high-skilled adult male immigrants in the US labor market. Analyses for high-skilled adult male native-born workers are also presented for comparison purposes. The results show that over-education is widespread in the high-skilled US labor market, both for immigrants and the native born. The extent of over-education declines with duration in the US as high-skilled immigrants obtain jobs commensurate with their educational level. Years of schooling that are above that which is usual for a worker’s occupation are associated with very low increases in earnings. Indeed, in the first 10 to 20 years in the US years of over-education among high-skilled workers have a negative effect on earnings. This ineffective use of surplus education appears across all occupations and high-skilled education levels. Although schooling serves as a pathway to occupational attainment, earnings appear to be more closely linked to a worker’s occupation than to the individual’s level of schooling.

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Bibliographic Info

Paper provided by Stockholm University Linnaeus Center for Integration Studies - SULCIS in its series SULCIS Working Papers with number 2010:7.

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Length: 55 pages
Date of creation: 12 Jul 2010
Date of revision:
Publication status: Published in High-Skilled Immigration in a Global Labor Market, Chiswick, Barry R. (eds.), 2011, pages 109-154, American Enterprise Institute.
Handle: RePEc:hhs:sulcis:2010_007

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Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden
Web page: http://www.su.se/sulcis
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Related research

Keywords: Immigrants; Skill; Schooling; Occupations; Earnings; Rates of Return;

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References

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  1. Chiswick, Barry R. & Miller, Paul W., 2009. "Does the Choice of Reference Levels of Education Matter in the ORU Earnings Equation?," IZA Discussion Papers 4382, Institute for the Study of Labor (IZA).
  2. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
  3. Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
  4. Chiswick, Barry R. & Miller, Paul W., 2008. "Why is the payoff to schooling smaller for immigrants?," Labour Economics, Elsevier, vol. 15(6), pages 1317-1340, December.
  5. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March.
  6. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
  7. Hartog,Joop & Maassen van den Brink,Henriëtte (ed.), 2009. "Human Capital," Cambridge Books, Cambridge University Press, number 9780521117562, October.
  8. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
  9. Stephen Rubb, 2003. "Post-College Schooling, Overeducation, and Hourly Earnings in the United States," Education Economics, Taylor & Francis Journals, vol. 11(1), pages 53-72.
  10. Chiswick, Barry R. & Miller, Paul W., 2007. "The International Transferability of Immigrants’ Human Capital Skills," IZA Discussion Papers 2670, Institute for the Study of Labor (IZA).
  11. Vahey, Shaun P., 2000. "The great Canadian training robbery: evidence on the returns to educational mismatch," Economics of Education Review, Elsevier, vol. 19(2), pages 219-227, April.
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Cited by:
  1. Piracha, Matloob & Vadean, Florin, 2012. "Migrant Educational Mismatch and the Labour Market," IZA Discussion Papers 6414, Institute for the Study of Labor (IZA).
  2. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute for the Study of Labor (IZA).
  3. Carlos Gradín, 2013. "Conditional occupational segregation of minorities in the US," Journal of Economic Inequality, Springer, vol. 11(4), pages 473-493, December.
  4. Chiswick, Barry R. & Miller, Paul W., 2010. "The Effects of School Quality in the Origin on the Payoff to Schooling for Immigrants," IZA Discussion Papers 5075, Institute for the Study of Labor (IZA).
  5. August Gächter & Stefanie Smoliner, 2010. "How well does education travel? Education and occupation with and without migration," FIW Research Reports series II-010, FIW.
  6. Andersson Joona, Pernilla & Datta Gupta, Nabanita & Wadensjö, Eskil, 2012. "Overeducation among Immigrants in Sweden: Incidence, Wage Effects and State-dependence," SULCIS Working Papers 2012:2, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  7. Olga Alonso-Villar & Coral del Río & Carlos Gradín, 2010. "The extent of occupational segregation in the US: Differences by race, ethnicity, and gender," Working Papers 180, ECINEQ, Society for the Study of Economic Inequality.
  8. Martin Kahanec & Renáta Králiková, 2012. "Higher Education Policy and Migration: The Role of International Student Mobility," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 9(4), pages 20-27, 02.

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