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Are Immigrants Paid Less for Education?

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  • Lubomira Anastassova

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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?," LIS Working papers 535, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:535
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    File URL: http://www.lisdatacenter.org/wps/liswps/535.pdf
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    References listed on IDEAS

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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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