Does over-education raise productivity and wages equally? The moderating role of workers’ origin and immigrants’ background

Valentine Jacobs, Kevin Pineda-Hernández (), Francois Rycx and Mélanie Volral

Education Economics, 2023, vol. 31, issue 6, 698-724

Abstract: We provide first evidence of the impact of over-education, among natives and immigrants, on firm-level productivity and wages. Our results show that the over-education wage premium is higher for natives than for immigrants. However, since the differential in productivity gains associated with over-education outweighs the corresponding wage premium differential, we conclude that over-educated native workers are in fact underpaid to a greater extent than their over-educated immigrant counterparts. This conclusion is refined by sensitivity analyses, when testing the role of immigrants’ background (e.g. region of birth, immigrant generation).

Date: 2023
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Related works:
Working Paper: Does Over-Education Raise Productivity And Wages Equally ? The Moderating Role Of Workers’ Origin And Immigrants’ Background (2022)
Working Paper: Does Over-Education Raise Productivity and Wages Equally? The Moderating Role of Workers' Origin and Immigrants' Background (2022)
Working Paper: Does Over-education Raise Productivity and Wages Equally ?The Moderating Role of Workers’ Origin and Immigrants’ Background (2022)
Working Paper: Does Over-education Raise Productivity and Wages Equally? The Moderating Role of Workers' Origin and Immigrants' Background (2022)
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DOI: 10.1080/09645292.2022.2156981

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