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Examining the Relationships between Labour Market Mismatches, Earnings and Job Satisfaction among Immigrant Graduates in Europe

Listed author(s):
  • McGuinness, Seamus
  • Byrne, Delma

This paper uses graduate survey data and econometric methods to estimate the incidence and wage/job satisfaction effects of over-education and overskilling among immigrants graduating from EU 15 based universities in 2005. Female immigrants with shorter durations of domicile were found to have a higher likelihood of overskilling. Newly arrived immigrants incurred wage penalties? which were exacerbated by additional penalties resulting from overskilling in the male labour market and overeducation in the female labour market. Established immigrants were found to enjoy wage premia, particularly within the male labour market, with no evidence of disproportionate wage impacts arising as a consequence of mismatch. Female immigrants were generally found to have a significantly lower probability of being job satisfied relative to native female graduates.

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Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP484.

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Date of creation: Jun 2014
Handle: RePEc:esr:wpaper:wp484
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  1. 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.
  2. 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.
  3. Blackaby, D.H. & Leslie, D.G. & Murphy, P.D. & O'Leary, N.C., 2005. "Born in Britain: How are native ethnic minorities faring in the British labour market?," Economics Letters, Elsevier, vol. 88(3), pages 370-375, September.
  4. Christian Dustmann & Nikolaos Theodoropoulos, 2010. "Ethnic minority immigrants and their children in Britain," Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 209-233, April.
  5. Ken Clark & Joanne Kathryn Lindley, 2005. "Immigrant Labour Market Assimilation and Arrival Effects: Evidence from the Labour Force Survey," Working Papers 2005004, The University of Sheffield, Department of Economics, revised Jan 2005.
  6. Shirley Dex & Jo Lindley, 2007. "Labour market job matching for UK minority ethnic groups," Working Papers 2007003, The University of Sheffield, Department of Economics, revised Jan 2007.
  7. Kostas Mavromaras & Seamus Mcguinness & Nigel O'Leary & Peter Sloane & Yi King Fok, 2010. "The Problem Of Overskilling In Australia And Britain," Manchester School, University of Manchester, vol. 78(3), pages 219-241, June.
  8. Bell, Brian D, 1997. "The Performance of Immigrants in the United Kingdom: Evidence from the GHS," Economic Journal, Royal Economic Society, vol. 107(441), pages 333-344, March.
  9. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
  10. Gallant, A Ronald & Nychka, Douglas W, 1987. "Semi-nonparametric Maximum Likelihood Estimation," Econometrica, Econometric Society, vol. 55(2), pages 363-390, March.
  11. McGuinness, Seamus & Sloane, Peter J., 2011. "Labour market mismatch among UK graduates: An analysis using REFLEX data," Economics of Education Review, Elsevier, vol. 30(1), pages 130-145, February.
  12. Alan Barrett & Seamus McGuinness & Martin O'Brien, 2008. "The Immigrant Earnings Disadvantage Across the Earnings and Skills Distributions: The Case of Immigrants from the EU's New Member States in Ireland," Papers WP236, Economic and Social Research Institute (ESRI).
  13. Kucel, Aleksander & Byrne, Delma, 2008. "Are Over-educated People Insiders or Outsiders? A Case of Job Search Methods and Over-education in UK," Papers WP258, Economic and Social Research Institute (ESRI).
  14. Lindley, Joanne, 2009. "The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey," Economics of Education Review, Elsevier, vol. 28(1), pages 80-89, February.
  15. D.H. Blackaby & D.G. Leslie & P.D. Murphy, 2002. "White-ethnic minority earnings and employment differentials in Britain: evidence from the LFS," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 270-297, April.
  16. Kostas Mavromaras & Seamus McGuinness & Nigel O'Leary & Peter Sloane & Zhang Wei, 2013. "Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 382-395, September.
  17. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
  18. Blackaby, David, et al, 1999. "Unemployment among Britain's Ethnic Minorities," Manchester School, University of Manchester, vol. 67(1), pages 1-20, January.
  19. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, August.
  20. Blackaby, D. H. & Leslie, D. G. & Murphy, P. D. & O'Leary, N. C., 1998. "The ethnic wage gap and employment differentials in the 1990s: Evidence for Britain," Economics Letters, Elsevier, vol. 58(1), pages 97-103, January.
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