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Immigrant Over- and Under-education: The Role of Home Country Labour Market Experience

  • Piracha, Matloob

    ()

    (University of Kent)

  • Tani, Massimiliano

    ()

    (IZA)

  • Vadean, Florin

    ()

    (University of Kent)

The cause of immigrant education mismatch in the host country labour market might not necessarily be discrimination or imperfect transferability of human capital, as argued in previous studies. Immigrants who have gained professional experience in the home country in jobs below their education level might be assessed by host country employers as having lower abilities and skills than those expected from their educational qualifications. Using the Longitudinal Survey of Immigrants to Australia we show that a significant part of the variation in the immigrants' probability to be over-/under-educated in the Australian labour market can be explained by having been over-/under-educated in the last job in the home country.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5302.

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Length: 34 pages
Date of creation: Nov 2010
Date of revision:
Publication status: published in: IZA Journal of Migration, 2012, 1, Article 3
Handle: RePEc:iza:izadps:dp5302
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  21. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
  22. S. Mcguinness, 2003. "Graduate overeducation as a sheepskin effect: evidence from Northern Ireland," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 597-608.
  23. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
  24. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
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  26. McGuinness, Seamus & Wooden, Mark, 2007. "Overskilling, Job Insecurity and Career Mobility," IZA Discussion Papers 2938, Institute for the Study of Labor (IZA).
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