The Wage premium of foreign education

new evidence from Australia

Gavin Chan, Christopher Heaton, Massimiliano Tani

Research output: Book/ReportOther report

Abstract

We study whether Australian employers recognise immigrants' education acquired abroad, and if so how. Using data from the Longitudinal Surveys of Immigrants in Australia, we apply interval regression to model migrant hourly earnings. We find substantially higher returns from human capital obtained in Australia and other OECD countries compared with non-OECD countries. These results suggest that the transfer of human capital acquired abroad is mediated by the country in which it was acquired, as found for Israel (Friedberg (2000) and the US (Bratsberg and Ragan (2002)). The results also suggest that immigrants from non-OECD countries are the ones who can gain the most from obtaining further education in Australia, and that targeted rather than generic policies in this area could reduce the extent of the education-occupation mismatch amongst immigrants.
Original languageEnglish
Place of PublicationBonn, Germany
PublisherInstitute for the Study of Labor (IZA)
Number of pages19
Publication statusPublished - 2012

Publication series

NameIZA discussion paper
PublisherInstitute for the Study of Labor (IZA)
No.6578

Keywords

  • immigration
  • education
  • economic assimilation

Fingerprint Dive into the research topics of 'The Wage premium of foreign education: new evidence from Australia'. Together they form a unique fingerprint.

  • Cite this

    Chan, G., Heaton, C., & Tani, M. (2012). The Wage premium of foreign education: new evidence from Australia. (IZA discussion paper; No. 6578). Bonn, Germany: Institute for the Study of Labor (IZA).