The Wage Premium of Foreign Education: New Evidence from Australia
AbstractWe study whether Australian employers recognise immigrants' education acquired abroad, and if so how. Using data from the Longitudinal Surveys of Immigrants in Australia, we apply interval regression to model migrant hourly earnings. We find substantially higher returns from human capital obtained in Australia and other OECD countries compared with non-OECD countries. These results suggest that the transfer of human capital acquired abroad is mediated by the country in which it was acquired, as found for Israel (Friedberg (2000) and the US (Bratsberg and Ragan (2002)). The results also suggest that immigrants from non-OECD countries are the ones who can gain the most from obtaining further education in Australia, and that targeted rather than generic policies in this area could reduce the extent of the education-occupation mismatch amongst immigrants.
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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6578.
Length: 21 pages
Date of creation: May 2012
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-EDU-2012-06-25 (Education)
- NEP-LAB-2012-06-25 (Labour Economics)
- NEP-LMA-2012-06-25 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2012-06-25 (Unemployment, Inequality & Poverty)
- NEP-MIG-2012-06-25 (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.:
- Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 186-216, February.
- Battu, Harminder & Sloane, Peter J., 2002.
"Overeducation and Ethnic Minorities in Britain,"
IZA Discussion Papers
650, Institute for the Study of Labor (IZA).
- Chiswick, Barry R. & Miller, Paul W., 2004. "Language Skills and Immigrant Adjustment: What Immigration Policy Can Do!," IZA Discussion Papers 1419, Institute for the Study of Labor (IZA).
- Chiswick, Barry R. & Miller, Paul W., 1994. "The determinants of post-immigration investments in education," Economics of Education Review, Elsevier, vol. 13(2), pages 163-177, June.
- Jaai Parasnis & Dietrich Fausten & Roland Cheo, 2008. "Do Australian Qualifications Help? The Effect of Host Country Qualification on Migrant Participation and Unemployment," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages S131-S140, 09.
- Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-53, June.
- Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor and Francis Journals, vol. 13(1), pages 47-72.
- Matloob Piracha & Massimiliano Tani & Florin Vadean, 2012.
"Immigrant over- and under-education: the role of home country labour market experience,"
IZA Journal of Migration,
Springer, vol. 1(1), pages 1-21, December.
- Piracha, Matloob & Tani, Massimiliano & Vadean, Florin, 2010. "Immigrant Over- and Under-education: The Role of Home Country Labour Market Experience," IZA Discussion Papers 5302, Institute for the Study of Labor (IZA).
- Matloob Piracha & Massimiliano Tani & Florin Vadean, 2011. "Immigrant Over- and Under-education: The Role of Home Country Labour Market Experience," Studies in Economics 1105, Department of Economics, University of Kent.
- Matloob Piracha & Massimiliano Tani & Florin Vadean, 2010. "Immigrant Over- and Under-education: The Role of Home Country Labour Market Experience," CEIS Research Paper 175, Tor Vergata University, CEIS, revised 09 Dec 2010.
- Chiswick, Barry R. & Miller, Paul W., 2011.
"Negative and Positive Assimilation, Skill Transferability, and Linguistic Distance,"
IZA Discussion Papers
5420, Institute for the Study of Labor (IZA).
- Barry R. Chiswick & Paul W. Miller, 2012. "Negative and Positive Assimilation, Skill Transferability, and Linguistic Distance," Journal of Human Capital, University of Chicago Press, vol. 6(1), pages 35 - 55.
- Chiswick, Barry R. & Lee, Yew Liang & Miller, Paul W., 2005.
"Immigrant Earnings: A Longitudinal Analysis,"
IZA Discussion Papers
1750, Institute for the Study of Labor (IZA).
- Parvinder Kler, 2007. "A panel data investigation into over-education among tertiary educated Australian immigrants," Journal of Economic Studies, Emerald Group Publishing, vol. 34(3), pages 179-193, September.
- Preston, Alison, 1997. "Where Are We Now with Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.
- Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.