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Are Immigrants Paid Less for Education?

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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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    References listed on IDEAS

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    3. Chiswick, Barry R. & Miller, Paul W., 2008. "Why is the payoff to schooling smaller for immigrants?," Labour Economics, Elsevier, vol. 15(6), pages 1317-1340, December.
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    Cited by:

    1. Beyer, Robert, 2016. "The Labor Market Performance of Immigrants in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145799, Verein für Socialpolitik / German Economic Association.
    2. 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).
    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.

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    More about this item

    Keywords

    Immigrants; schooling; occupations; earnings; rates of return;
    All these keywords.

    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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