IDEAS home Printed from https://ideas.repec.org/a/spr/jlabrs/v56y2022i1d10.1186_s12651-022-00324-5.html
   My bibliography  Save this article

Same degree but different outcomes: an analysis of labour market outcomes for native and international PhD students in Australia

Author

Listed:
  • Massimiliano Tani

    (UNSW Canberra)

Abstract

This paper used data on career destinations over the period 1999–2015 to study the labour market outcomes of native and foreign PhD graduates staying on in Australia as skilled migrants. Natives with an English-speaking background emerge as benefiting from positive employer ‘discrimination’ (a wage premium unrelated to observed characteristics such as gender, age, and previous work experience). The premium is field-specific and applies to graduates in Science, Technology, Engineering and Mathematics (STEM). In contrast, foreign PhD graduates with a non-English speaking background experience inferior labour market outcomes, especially if they work in the university sector. Against expectations to the contrary, completing the highest degree of education in the host country and staying on in the same sector where one acquired human capital does not appear to eliminate lesser labour market outcomes for the foreign-born.

Suggested Citation

  • Massimiliano Tani, 2022. "Same degree but different outcomes: an analysis of labour market outcomes for native and international PhD students in Australia," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-18, December.
    • Handle: RePEc:spr:jlabrs:v:56:y:2022:i:1:d:10.1186_s12651-022-00324-5
    DOI: 10.1186/s12651-022-00324-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s12651-022-00324-5
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s12651-022-00324-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    2. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
    3. Carillo, Maria Rosaria & Papagni, Erasmo & Sapio, Alessandro, 2013. "Do collaborations enhance the high-quality output of scientific institutions? Evidence from the Italian Research Assessment Exercise," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 25-36.
    4. Francesco Lissoni, 2012. "Academic patenting in Europe: an overview of recent research and new perspectives," Post-Print hal-00779435, HAL.
    5. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    6. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    7. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
    8. Richard Freeman, 2010. "Globalization of scientific and engineering talent: international mobility of students, workers, and ideas and the world economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 393-406.
    9. Mangematin, V., 2000. "PhD job market: professional trajectories and incentives during the PhD," Research Policy, Elsevier, vol. 29(6), pages 741-756, June.
    10. Richard B. Freeman & Ina Ganguli & Raviv Murciano-Goroff, 2014. "Why and Wherefore of Increased Scientific Collaboration," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 17-48, National Bureau of Economic Research, Inc.
    11. Matloob Piracha & Massimiliano Tani & Florin Vadean, 2012. "Immigrant over- and under-education: the role of home country labour market experience," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-21, December.
    12. Frédéric Docquier & Çağlar Ozden & Giovanni Peri, 2016. "The Labour Market Effects Of Immigration And Emigration In Oecd Countries," World Scientific Book Chapters, in: The Economics of International Migration, chapter 6, pages 187-226, World Scientific Publishing Co. Pte. Ltd..
    13. Gibson, John & McKenzie, David, 2011. "The microeconomic determinants of emigration and return migration of the best and brightest: Evidence from the Pacific," Journal of Development Economics, Elsevier, vol. 95(1), pages 18-29, May.
    14. Michael Roach & Henry Sauermann & John Skrentny, 2019. "Are Foreign Stem PhDs More Entrepreneurial? Entrepreneurial Characteristics, Preferences and Employment Outcomes of Native and Foreign Science & Engineering PhD Students," NBER Working Papers 26225, National Bureau of Economic Research, Inc.
    15. Chiara Franzoni & Giuseppe Scellato & Paula Stephan, 2012. "Foreign Born Scientists: Mobility Patterns for Sixteen Countries," NBER Working Papers 18067, National Bureau of Economic Research, Inc.
    16. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    17. Andries de Grip & Didier Fouarge & Jan Sauermann, 2010. "What affects international migration of European science and engineering graduates?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 407-421.
    18. Lee, Hsing-fen & Miozzo, Marcela & Laredo, Philippe, 2010. "Career patterns and competences of PhDs in science and engineering in the knowledge economy: The case of graduates from a UK research-based university," Research Policy, Elsevier, vol. 39(7), pages 869-881, September.
    19. Jennifer Hunt, 2011. "Which Immigrants Are Most Innovative and Entrepreneurial? Distinctions by Entry Visa," Journal of Labor Economics, University of Chicago Press, vol. 29(3), pages 417-457.
    20. Laudeline Auriol & Max Misu & Rebecca Ann Freeman, 2013. "Careers of Doctorate Holders: Analysis of Labour Market and Mobility Indicators," OECD Science, Technology and Industry Working Papers 2013/4, OECD Publishing.
    21. Laudeline Auriol & Max Misu & Rebecca Freeman, 2013. "Doctorate Holders: Labour Market and Mobility Indicators," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 7(4), pages 16-42.
    22. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    23. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    24. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    25. Henry Sauermann & Michael Roach, 2012. "Science PhD Career Preferences: Levels, Changes, and Advisor Encouragement," PLOS ONE, Public Library of Science, vol. 7(5), pages 1-9, May.
    26. Mr. William Carrington & Ms. Enrica Detragiache, 1998. "How Big is the Brain Drain?," IMF Working Papers 1998/102, International Monetary Fund.
    27. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    28. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    29. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    30. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    31. Hayter, Christopher S. & Parker, Marla A., 2019. "Factors that influence the transition of university postdocs to non-academic scientific careers: An exploratory study," Research Policy, Elsevier, vol. 48(3), pages 556-570.
    32. Tani, Massimiliano, 2017. "Local signals and the returns to foreign education," Economics of Education Review, Elsevier, vol. 61(C), pages 174-190.
    33. Laudeline Auriol, 2007. "Labour Market Characteristics and International Mobility of Doctorate Holders: Results for Seven Countries," OECD Science, Technology and Industry Working Papers 2007/2, OECD Publishing.
    34. Leuven, Edwin & Oosterbeek, Hessel, 2011. "Overeducation and Mismatch in the Labor Market," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 283-326, Elsevier.
    35. Carolina Cañibano & F. Javier Otamendi & Francisco Solís, 2011. "International temporary mobility of researchers: a cross-discipline study," Scientometrics, Springer;Akadémiai Kiadó, vol. 89(2), pages 653-675, November.
    36. Scellato, Giuseppe & Franzoni, Chiara & Stephan, Paula, 2015. "Migrant scientists and international networks," Research Policy, Elsevier, vol. 44(1), pages 108-120.
    37. DaVanzo, Julie, 1983. "Repeat Migration in the United States: Who Moves Back and Who Moves On?," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 552-559, November.
    38. 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.
    39. Antonio Di Paolo, 2016. "(Endogenous) occupational choices and job satisfaction among recent Spanish PhD recipients," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(3), pages 511-535, June.
    40. Paula Stephan & Jennifer Ma, 2005. "The Increased Frequency and Duration of the Postdoctorate Career Stage," American Economic Review, American Economic Association, vol. 95(2), pages 71-75, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tani, Massimiliano, 2020. "The labour market for native and international PhD students: similarities, differences, and the role of (university) employers," GLO Discussion Paper Series 621, Global Labor Organization (GLO).
    2. Fernandez-Zubieta, Ana & Geuna, Aldo & Lawson, Cornelia, 2015. "What do We Know of the Mobility of Research Scientists and of its Impact on Scientific Production," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201522, University of Turin.
    3. Tani, Massimiliano, 2018. "Selective immigration policies, occupational licensing, and the quality of migrants’ education-occupation match," GLO Discussion Paper Series 206, Global Labor Organization (GLO).
    4. Matthias Parey & Jens Ruhose & Fabian Waldinger & Nicolai Netz, 2017. "The Selection of High-Skilled Emigrants," The Review of Economics and Statistics, MIT Press, vol. 99(5), pages 776-792, December.
    5. Stefano Breschi & Francesco Lissoni & Gianluca Tarasconi, 2014. "Inventor Data for Research on Migration and Innovation: A Survey and a Pilot," WIPO Economic Research Working Papers 17, World Intellectual Property Organization - Economics and Statistics Division.
    6. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2016. "Global Talent Flows," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 83-106, Fall.
    7. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.
    8. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    9. repec:zbw:bofrdp:2017_002 is not listed on IDEAS
    10. Carolina Cañibano & Richard Woolley & Eric J. Iversen & Sybille Hinze & Stefan Hornbostel & Jakob Tesch, 2019. "A conceptual framework for studying science research careers," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1964-1992, December.
    11. Massimiliano Tani, 2021. "Occupational Licensing and the Skills Mismatch of Highly Educated Migrants," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 730-756, September.
    12. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.
    13. repec:zbw:bofrdp:2017_007 is not listed on IDEAS
    14. Tani, Massimiliano, 2018. "Selective Immigration, Occupational Licensing, and Labour Market Outcomes of Foreign-Trained Migrants," IZA Discussion Papers 11370, Institute of Labor Economics (IZA).
    15. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2016. "Global Talent Flows," Journal of Economic Perspectives, American Economic Association, vol. 30(4), pages 83-106, Fall.
    16. Francesco LISSONI, 2016. "Migration and Innovation Diffusion : An Eclectic Survey," Cahiers du GREThA (2007-2019) 2016-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Marco Di Cintio & Emanuele Grassi, 2016. "The returns to temporary migration: The case of Italian Ph.D.s," EERI Research Paper Series EERI RP 2016/15, Economics and Econometrics Research Institute (EERI), Brussels.
    18. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    19. Herrera, Liliana & Nieto, Mariano, 2016. "PhD careers in Spanish industry: Job determinants in manufacturing versus non-manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 341-351.
    20. Sara Binassi & Giovanni Guidetti & Mariele Macaluso & Giulio Pedrini, 2021. "Assessing selection patterns and wage differentials of high-skilled migrants. Evidence from Italian graduates working abroad," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 0(113), pages 83-115.
    21. Marco Cintio & Emanuele Grassi, 2017. "International mobility and wages: an analysis of Italian Ph.D. graduates," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 759-791, November.
    22. Hanson, Gordon & Liu, Chen, 2023. "Immigration and occupational comparative advantage," Journal of International Economics, Elsevier, vol. 145(C).

    More about this item

    Keywords

    PhD graduates; Wage decomposition; Discrimination; International students;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jlabrs:v:56:y:2022:i:1:d:10.1186_s12651-022-00324-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.