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Returns to pre-immigration education for non-western immigrants: why so low?

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  • In�s Hardoy
  • P�l Sch�ne

Abstract

The main purpose of this paper is to analyse the return to pre-immigration education for non-western immigrants, and explain why it is so low. Returns to one extra year of education is three times higher for ethnic Norwegians than for non-western immigrants. Using the method 'Over-Required-Under' (ORU) education approach, we reveal that this is because non-western immigrants have lower returns to overeducation and required education, and they also have lower penalties associated with undereducation. These factors together explain more than 60% all of the difference in returns to education between native born and non-western immigrants. Based on different results in this paper, we argue that both quality of education from the country of birth and lack of transferable skills may be important components.

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  • In�s Hardoy & P�l Sch�ne, 2014. "Returns to pre-immigration education for non-western immigrants: why so low?," Education Economics, Taylor & Francis Journals, vol. 22(1), pages 48-72, February.
    • Handle: RePEc:taf:edecon:v:22:y:2014:i:1:p:48-72
    DOI: 10.1080/09645292.2010.511846
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    References listed on IDEAS

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    1. Bauer, Thomas K. & Lofstrom, Magnus & Zimmermann, Klaus F., 2000. "Immigration Policy, Assimilation of Immigrants and Natives' Sentiments towards Immigrants: Evidence from 12 OECD-Countries," IZA Discussion Papers 187, Institute of Labor Economics (IZA).
    2. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
    3. Heinz, Frigyes Ferdinand & Ward-Warmedinger, Melanie, 2006. "Cross-border labour mobility within an enlarged EU," Occasional Paper Series 52, European Central Bank.
    4. Frigyes Ferdinand Heinz & Melanie Ward-Warmedinger, 2006. "Cross-border labour mobility within an enlarged EU," Occasional Paper Series 52, European Central Bank.
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    1. Ivana Fellini & Raffaele Guetto & Emilio Reyneri, 2018. "Poor Returns to Origin-Country Education for Non-Western Immigrants in Italy: An Analysis of Occupational Status on Arrival and Mobility," Social Inclusion, Cogitatio Press, vol. 6(3), pages 34-47.
    2. 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.
    3. Bedaso, Fenet, 2021. "The Labor Market Integration of Refugees and other Migrants in Germany," GLO Discussion Paper Series 884, Global Labor Organization (GLO).
    4. Mariña Fernández-Reino & Jonas Radl & María Ramos, 2018. "Employment Outcomes of Ethnic Minorities in Spain: Towards Increasing Economic Incorporation among Immigrants and the Second Generation?," Social Inclusion, Cogitatio Press, vol. 6(3), pages 48-63.
    5. Fernández-Reino, Mariña & Radl, Jonas & Ramos, María, 2018. "Employment Outcomes of Ethnic Minorities in Spain: Towards Increasing Economic Incorporation among Immigrants and the Second Generation?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(3), pages 48-63.
    6. Edvard N. Larsen & Adrian F. Rogne & Gunn E. Birkelund, 2018. "Perfect for the Job? Overqualification of Immigrants and their Descendants in the Norwegian Labor Market," Social Inclusion, Cogitatio Press, vol. 6(3), pages 78-103.

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