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A panel data investigation into over‐education among tertiary educated Australian immigrants

Author

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  • Parvinder Kler

Abstract

Purpose - To investigate the extent of over‐education for recently arrived tertiary educated male immigrants in order to ascertain if higher educated immigrants face assimilation hurdles in the Australian labour market. Design/methodology/approach - Using immigrant longitudinal data (LSIA), this paper uses the job analysis/objective method of defining over‐education. Also, bivariate probits are used to account for selectivity into employment when studying the determinants of graduate over‐education. The over, required and under‐education (ORU) earnings function is utilised to find the rates of return to education investment. Findings - It is found that English speaking background (ESB) immigrants to have similar rates of over‐education compared to the native born, while only Asian non‐English speaking background (NESB) immigrants see a rise in over‐education after tighter immigration and welfare policies were introduced. Returns to required schooling are substantial, but the penalty for excess years of schooling is large, though consistent with the stylised facts of over‐education. Research limitations/implications - Short time‐frame (up to five years) only allows for an investigation of initial assimilation. Originality/value - Using panel data, this paper is the first to study the initial phase of highly educated immigrant assimilation into the Australian labour market from the viewpoint of job matching rather than just employment.

Suggested Citation

  • Parvinder Kler, 2007. "A panel data investigation into over‐education among tertiary educated Australian immigrants," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(3), pages 179-193, August.
    • Handle: RePEc:eme:jespps:v:34:y:2007:i:3:p:179-193
    DOI: 10.1108/01443580710772759
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    Citations

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    Cited by:

    1. Stefan Jestl & Michael Landesmann & Sandra M. Leitner, 2015. "Migrants and Natives in EU Labour Markets: Mobility and Job-Skill Mismatch Patterns," wiiw Research Reports 403, The Vienna Institute for International Economic Studies, wiiw.
    2. Massimiliano Tani & Christopher Heaton & Gavin Chan, 2013. "The Wage Premium of Foreign Education: New Evidence from Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(4), pages 395-404, December.
    3. Mesbah Sharaf, 2013. "The earnings of immigrants and the quality adjustment of immigrant human capital," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-18, December.
    4. Carroll, David & Tani, Massimiliano, 2011. "Labour Market Under-Utilisation of Recent Higher Education Graduates: New Australian Panel Evidence," IZA Discussion Papers 6047, Institute of Labor Economics (IZA).
    5. V. Jacobs & F. Rycx & M. Volral, 2022. "Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics," De Economist, Springer, vol. 170(4), pages 459-501, November.
    6. Sholeh A. Maani & Le Wen, 2021. "Over-education and immigrant earnings: a penalized quantile panel regression analysis," Applied Economics, Taylor & Francis Journals, vol. 53(24), pages 2771-2790, May.
    7. Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, vol. 32(C), pages 207-218.
    8. Deahoon Nahm & Massimiliano Tani, 2015. "Skilled immigrants' contribution to productive efficiency," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(4), pages 594-612, October.
    9. Jacobs, Valentine & Mahy, Benoît & Rycx, François & Volral, Mélanie, 2019. "The Heterogeneous Effects of Workers' Countries of Birth on Over-Education," IZA Discussion Papers 12705, Institute of Labor Economics (IZA).
    10. Tani, Massimiliano, 2012. "Does Immigration Policy Affect the Education-Occupation Mismatch? Evidence from Australia," IZA Discussion Papers 6937, Institute of Labor Economics (IZA).
    11. T Kifle & P Kler & CM Fleming, 2018. "Australian immigrantsâ labour market success: Does occupation matter?," Discussion Papers in Economics economics:201805, Griffith University, Department of Accounting, Finance and Economics.
    12. Valentine Jacobs, 2021. "Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics," DULBEA Working Papers 23562, ULB -- Universite Libre de Bruxelles.
    13. Mancinelli, Susanna & Mazzanti, Massimiliano & Piva, Nora & Ponti, Giovanni, 2010. "Education, reputation or network? Evidence on migrant workers employability," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 64-71, January.

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    Keywords

    Education; Immigrants; Australia;
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