EconPapers    
Economics at your fingertips  
 

Does Over-Education Raise Productivity And Wages Equally ? The Moderating Role Of Workers’ Origin And Immigrants’ Background

Valentine Jacobs (), Francois Rycx and Mélanie Volral
Additional contact information
Valentine Jacobs: Université de Mons (Soci&ter) and Université libre de Bruxelles (CEBRIG and DULBEA)

No 2022003, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We provide first evidence of the impact of over-education, among natives and immigrants, on firmlevel productivity and wages. We use Belgian linked panel data and rely on the methodology from Hellerstein et al. (1999) to estimate ORU (over-, required, and under-education) equations aggregated at the firm level. 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 between natives and immigrants outweighs the corresponding wage premium differential, we conclude – based on OLS and dynamic GMM-SYS estimates – 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, age at arrival in the host country, tenure).

Keywords: Immigrants; over-education; productivity; wages; linked panel data; Belgium (search for similar items in EconPapers)
JEL-codes: J24 J71 (search for similar items in EconPapers)
Date: 2022-02-07
New Economics Papers: this item is included in nep-edu, nep-eff, nep-eur, nep-lma, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sites.uclouvain.be/econ/DP/IRES/2022003.pdf (application/pdf)

Related works:
Journal Article: Does over-education raise productivity and wages equally? The moderating role of workers’ origin and immigrants’ background (2023) Downloads
Working Paper: Does Over-Education Raise Productivity and Wages Equally? The Moderating Role of Workers' Origin and Immigrants' Background (2022) Downloads
Working Paper: Does Over-education Raise Productivity and Wages Equally ?The Moderating Role of Workers’ Origin and Immigrants’ Background (2022) Downloads
Working Paper: Does Over-education Raise Productivity and Wages Equally? The Moderating Role of Workers' Origin and Immigrants' Background (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2022003

Access Statistics for this paper

More papers in LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Virginie LEBLANC ().

 
Page updated 2025-03-30
Handle: RePEc:ctl:louvir:2022003