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ORU Analyses of Immigrant Earnings in Australia, with International Comparisons

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Author Info

  • Chiswick, Barry R.

    ()
    (George Washington University)

  • Miller, Paul W.

    (Curtin University)

Abstract

This paper examines the way immigrant earnings are determined in Australia. It uses the overeducation/required education/undereducation (ORU) framework (Hartog, 2000) and a decomposition of the native-born/foreign-born differential in the payoff to schooling developed by Chiswick and Miller (2008). This decomposition links overeducation to the less-than- perfect international transferability of immigrants' human capital, and undereducation to favorable selection in immigration. Comparisons are offered with findings from analyses for the US and Canada to enable assessment of the relative impacts of favorable selection and the limited international transferability of human capital to the lower payoff to schooling for the foreign born. The sensitivity of the results of the decomposition to several measurement issues is assessed.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4422.

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Length: 41 pages
Date of creation: Sep 2009
Date of revision:
Publication status: published as "The Effects of Educational-Occupational Mismatch on Immigrant Earnings in Australia, with International Comparisons" in: International Migration Review, 2010, 44(4), 869-898
Handle: RePEc:iza:izadps:dp4422

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Related research

Keywords: selectivity; rates of return; earnings; occupations; schooling; immigrants; skill transferability; ORU analysis;

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Cited by:
  1. Andersson Joona, Pernilla & Datta Gupta, Nabanita & Wadensjö, Eskil, 2012. "Overeducation among Immigrants in Sweden: Incidence, Wage Effects and State-Dependence," IZA Discussion Papers 6695, Institute for the Study of Labor (IZA).

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