“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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201318.
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”," AQR Working Papers 201310, University of Barcelona, Regional Quantitative Analysis Group, 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-2013-11-02 (All new papers)
- NEP-LAB-2013-11-02 (Labour Economics)
- NEP-MIG-2013-11-02 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Poot, Jacques & Stillman, Steven, 2010.
"The Importance of Heterogeneity When Examining Immigrant Education-Occupation Mismatch: Evidence from New Zealand,"
IZA Discussion Papers
5211, Institute for the Study of Labor (IZA).
- Jacques Poot & Steven Stillman, 2010. "The importance of heterogeneity when examining immigrant education-occupation mismatch: evidence from New Zealand," CReAM Discussion Paper Series 1023, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Dell'Aringa Carlo & Pagani Laura, 2011.
"Labour Market Assimilation and Over-Education: The Case of Immigrant Workers in Italy,"
Società editrice il Mulino, issue 2, pages 219-240.
- Carlo Dell'Aringa & Laura Pagani, 2010. "Labour Market Assimilation and Over Education: The Case of Immigrant Workers in Italy," Working Papers 178, University of Milano-Bicocca, Department of Economics, revised Jan 2010.
- Carlo Dell'Aringa & Laura Pagani, 2010. "Labour Market Assimilation and Over Education: The Case of Immigrant Workers in Italy," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0058, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
- Chiswick, Barry R. & Miller, Paul W., 2005.
"Why Is the Payoff to Schooling Smaller for Immigrants?,"
IZA Discussion Papers
1731, Institute for the Study of Labor (IZA).
- 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.
- Paul W. Miller & Barry R. Chiswick, 2006. "Why is the Payoff to Schooling Smaller for Immigrants?," Economics Discussion / Working Papers 06-03, The University of Western Australia, Department of Economics.
- Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
- Constant, Amelie F. & Massey, Douglas S., 2002.
"Self-Selection, Earnings, and Out-Migration: A Longitudinal Study of Immigrants to Germany,"
IZA Discussion Papers
672, Institute for the Study of Labor (IZA).
- Amelie Constant & Douglas S. Massey, 2003. "Self-selection, earnings, and out-migration: A longitudinal study of immigrants to Germany," Journal of Population Economics, Springer, vol. 16(4), pages 631-653, November.
- Longva,P. & Raaum,O., 2000.
"Earnings assimilation of immigrants in Norway : a reappraisal,"
05/2000, Oslo University, Department of Economics.
- Pål Longva & Oddbjørn Raaum, 2003. "Earnings assimilation of immigrants in Norway – A reappraisal," Journal of Population Economics, Springer, vol. 16(1), pages 177-193, 02.
- Kiker, B. F. & Santos, Maria C. & de Oliveira, M. Mendes, 1997. "Overeducation and undereducation: Evidence for Portugal," Economics of Education Review, Elsevier, vol. 16(2), pages 111-125, April.
- Michael Shields & Stephen Wheatley Price, 1998. "The earnings of male immigrants in England: evidence from the quarterly LFS," Applied Economics, Taylor & Francis Journals, vol. 30(9), pages 1157-1168.
- Friedberg, Rachel M, 2000.
"You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital,"
Journal of Labor Economics,
University of Chicago Press, vol. 18(2), pages 221-51, April.
- Rachel M. Friedberg, 1996. "You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital," NBER Working Papers 5837, National Bureau of Economic Research, Inc.
- 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.
- Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
- 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.
- Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
- Mariya Aleksynska & Ahmed Tritah, 2011.
"Occupation-Education Mismatch of Immigrant Workers in Europe: Context and Policies,"
2011-16, CEPII research center.
- Aleksynska, Mariya & Tritah, Ahmed, 2013. "Occupation–education mismatch of immigrant workers in Europe: Context and policies," Economics of Education Review, Elsevier, vol. 36(C), pages 229-244.
- Yun, Myeong-Su, 2004.
"Decomposing differences in the first moment,"
Elsevier, vol. 82(2), pages 275-280, February.
- Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, vol. 26(4), pages 420-432, August.
- Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-44, March.
- Duleep, Harriet Orcutt & Regets, Mark C., 1997. "The decline in immigrant entry earnings: Less transferable skills or lower ability?," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 189-208.
- Joanne Kathryn Lindley & Pamela Lenton, 2006. "The Over-Education of UK Immigrants: Evidence from the Labour Force Survey," Working Papers 2006001, The University of Sheffield, Department of Economics, revised Jan 2006.
- Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, 07.
- Rubb, S., 2003. "Overeducation in the labor market: a comment and re-analysis of a meta-analysis," Economics of Education Review, Elsevier, vol. 22(6), pages 621-629, December.
- Piracha, Matloob & Vadean, Florin, 2012. "Migrant Educational Mismatch and the Labour Market," IZA Discussion Papers 6414, Institute for the Study of Labor (IZA).
- Jesús Ruiz-Huerta & Rosa Martínez, 2014. "Multidimensional poverty in immigrant households: a comparative analysis within the Europe 2020 framework," CIRANO Working Papers 2014s-18, CIRANO.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alicia García).
If references are entirely missing, you can add them using this form.