Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35984
Authors: 
Chiswick, Barry R.
Miller, Paul W.
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4422
Abstract: 
This paper examines the way immigrant earnings are determined in Australia. It uses the overeducation/required education/undereducation (ORU) framework (Hartog, 2000) and a decomposition of the native-born/foreign-born differential in the payoff to schooling developed by Chiswick and Miller (2008). This decomposition links overeducation to the less-than- perfect international transferability of immigrants' human capital, and undereducation to favorable selection in immigration. Comparisons are offered with findings from analyses for the US and Canada to enable assessment of the relative impacts of favorable selection and the limited international transferability of human capital to the lower payoff to schooling for the foreign born. The sensitivity of the results of the decomposition to several measurement issues is assessed.
Subjects: 
Immigrants
schooling
occupations
earnings
rates of return
selectivity
skill transferability
ORU analysis
JEL: 
F22
I21
J24
J31
J61
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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