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Brain waste? Educated immigrants in the US labor market

  • Mattoo, Aaditya
  • Neagu, Ileana Cristina
  • Özden, Çaglar

The authors investigate the occupational placement of immigrants in the U.S. labor market using census data. They find striking differences among highly educated immigrants from different countries, even after they control for individuals'age, experience, and level of education. With some exceptions, educated immigrants from Latin American and Eastern European countries are more likely to end up in unskilled jobs than immigrants from Asia and industrial countries. A large part of the variation can be explained by attributes of the country of origin that influence the quality of human capital, such as expenditure on tertiary education and the use of English as a medium of instruction. Performance is adversely affected by military conflict at home which may weaken institutions that create human capital and lower the threshold quality of immigrants. The selection effects of U.S. immigration policy also play an important role in explaining cross-country variation. The observed under-placement of educated migrants might be alleviated if home and host countries cooperate by sharing information on labor market conditions and work toward the recognition of qualifications.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 87 (2008)
Issue (Month): 2 (October)
Pages: 255-269

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Handle: RePEc:eee:deveco:v:87:y:2008:i:2:p:255-269
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  1. Guillermina Jasso & Mark R. Rosenzweig & James P. Smith, 1998. "The Changing Skills of New Immigrants to the United States: Recent Trends and Their Determinants," NBER Working Papers 6764, National Bureau of Economic Research, Inc.
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  3. Mattoo, Aaditya & Neagu, Ileana Cristina & Ozden, Caglar, 2005. "Brain waste? Educated immigrants in the U.S. labor market," Policy Research Working Paper Series 3581, The World Bank.
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