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

Ines Hardoy and P�l Sch�ne
Authors registered in the RePEc Author Service: Pål Schøne ()

Education Economics, 2014, vol. 22, issue 1, 48-72

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.

Date: 2014
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DOI: 10.1080/09645292.2010.511846

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