Why is the payoff to schooling smaller for immigrants?
MetadataShow full item record
To answer the question, this paper uses the Over-Required-Under Education technique, a newdecomposition methodology and data on adult men from the 2000 US Census. Using the 510 three-digitoccupational categories, similar patterns emerge whether the mean or mode of education in the occupation is used as the typical (required) level. The partial effect of the occupation's typical schooling level is the same for immigrants and natives. About two thirds of the smaller effect of schooling on earnings is attributable to differences by nativity in the payoffs to over/under education. The remainder is largely due to the different distributions by nativity of over/under education. Favorable immigrant selectivity, especially among the least skilled, and to a lesser extent, limited transferability of foreign schooling, is largely responsible for these patterns. Avariety of tests of robustness are performed, including separate analyses for child and adult immigrants.
NOTICE: this is the author’s version of a work that was accepted for publication in Labour Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Labour Economics, 15, 6, 2008. DOI: 10.1016/j.labeco.2008.01.001
Showing items related by title, author, creator and subject.
Mavisakalyan, Astghik (2011)This article examines the impact of immigration on private school enrollment through themechanism of public education spending. It fmds that the immigrant share of populationraises private school enrollment across countries ...
Chiswick, B.; Miller, Paul (2007)This paper uses the concept of a computer as a public good within the household to model the demand for computers at home. It also investigates the determinants, and consequences for earnings, of computer use. The equations ...
The Effects of Educational-Occupational Mismatch on Immigrant Earnings in Australia, with International ComparisonsChiswick, B.; Miller, Paul (2010)This paper examines the way immigrant earnings are determined in Australia. It uses the overeducation/required education/undereducation framework and a decomposition of the native-born/foreign-born differential in the ...