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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.

Suggested Citation

  • 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. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
    2. Heinz, Frigyes Ferdinand & Ward-Warmedinger, Melanie, 2006. "Cross-border labour mobility within an enlarged EU," Occasional Paper Series 52, European Central Bank.
    3. 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).
    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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