ORU Analyses of Immigrant Earnings in Australia, with International Comparisons
AbstractThis 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 InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4422.
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
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- 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
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-10 (All new papers)
- NEP-LAB-2009-10-10 (Labour Economics)
- NEP-MIG-2009-10-10 (Economics of Human Migration)
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- 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.
- 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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