Immigrants' Educational Mismatch and the Penalty of Over-Education
Eleni Kalfa () and
Matloob Piracha ()
Additional contact information
Eleni Kalfa: University of Kent
No 7721, IZA Discussion Papers from Institute for the Study of Labor (IZA)
This paper analyses immigrants' education-occupation mismatch as well as its impact on their wages in Spain. Using cross-sectional data from the National Immigrant Survey of Spain 2007, we estimate a probit model taking into account the possible problem of selection bias. We show that the incidence of immigrants' education-occupation mismatch in the Spanish labour market can largely be explained by the incidence of education-occupation mismatch in the last job held in the home country. The probability of having been over-educated at home shows to have a higher effect on the probability of being over-educated in the first job upon arrival where work experience gained in the home country shows to be highly valued by Spanish employers. In addition, our results show that those who were over-educated in their first job after arrival are more likely to continue in being overeducated in their current/last job in Spain. Furthermore, we analyse the performance of immigrants in Spain by estimating the wage penalty of over-education. Using log wage equation as well as predicted and counterfactual values distinguishing between immigrants being in the correctly matched occupation and those who are over-educated, we show that over-educated immigrants earn significantly lower wage compared to their correctly-matched counterparts, while over-educated immigrants' would have earned an even larger amount if the same individuals were employed in a correctly matched job instead. Significant differences are also apparent when restricting the models to the level of education.
Keywords: sample selection; education-occupation mismatch; immigration (search for similar items in EconPapers)
JEL-codes: C34 J24 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-lab, nep-lma and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Published in: Education Economics, 2017, 22(5), 462-481
Downloads: (external link)
Journal Article: Immigrants’ educational mismatch and the penalty of over-education (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp7721
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute for the Study of Labor (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().