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Are Immigrants Paid Less for Education?

Author

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  • Lubomira Anastassova

Abstract

This paper is on measuring the gap in returns to education between foreign-born and native workers in France, Germany, and Austria and investigates the extent to which this gap can be explained by a mis-match between the actual and the years of schooling typical for a given occupation. The return to usual years of schooling across different occupations is found to be higher than that for actual years of education. In the case of correctly matched workers who have the ‘typical’ education in a certain occupation, there is no additional reward in earnings for natives compared to foreign workers. Immigrants, however, have significantly lower wage returns in being over-educated than natives but are penalized less for being under-educated.

Suggested Citation

  • Lubomira Anastassova, 2010. "Are Immigrants Paid Less for Education?," CERGE-EI Working Papers wp406, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
  • Handle: RePEc:cer:papers:wp406
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    File URL: http://www.cerge-ei.cz/pdf/wp/Wp406.pdf
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    References listed on IDEAS

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    1. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
    2. H. Battu & P. J. Sloane, 2004. "Over-Education and Ethnic Minorities in Britain," Manchester School, University of Manchester, vol. 72(4), pages 535-559, July.
    3. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
    4. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, July.
    5. Daly, Mary C. & Buchel, Felix & Duncan, Greg J., 2000. "Premiums and penalties for surplus and deficit education: Evidence from the United States and Germany," Economics of Education Review, Elsevier, vol. 19(2), pages 169-178, April.
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    Cited by:

    1. Robert C. M. Beyer, 2017. "The Performance of Immigrants in the German Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 892, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Robert C. M. Beyer, 2016. "The Labor Market Performance of Immigrants in Germany," IMF Working Papers 16/6, International Monetary Fund.
    3. Derfler Peter & Bešić Almina, 2013. "Arbeitszufriedenheit von Personen mit Migrationshintergrund - Eine Analyse auf Basis des Sozio-oekonomischen Panels (SOEP) / Job satisfaction of migrants - An analysis based on the Socio-economic Pane," Arbeit, De Gruyter, vol. 22(2), pages 134-149, June.

    More about this item

    Keywords

    Immigrants; schooling; occupations; earnings; rates of return;

    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

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