Immigrant Overeducation : Evidence from Denmark
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World Bank, Washington, DC
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Anecdotes abound in the Danish public
debate about well-educated immigrants that are in jobs they
are formally overqualified for. Using a 1995-2002 panel data
set based on Danish registers, this study attempts to find
out how large a problem immigrant overeducation is in the
context of the Danish labor market. More specifically, three
questions are posed: First, to what extent are immigrants
overeducated and are they more likely to be so than native
Danes? Second, why are some immigrants more likely to become
overeducated than others? And finally, what are the
consequences of overeducation for individual wages? The
authors find that among wage earners with at least a
vocational education or higher, 25 percent of male
non-Western immigrants are overeducated. The same applies
for 15 percent of native Danes. Particularly immigrants with
a foreign-acquired education risk becoming overeducated -
here the share is 30 percent among those with a vocational
education or higher. The authors find that Danish labor
market experience is extremely important in reducing the
likelihood of becoming overeducated. Years spent in the
country without accumulating labor market experience do not
improve an individual's chances of an appropriate
job-to-education match. In terms of earnings consequences,
the study concludes that years of overeducation do increase
wages for immigrants, but much less so than years of
adequate education. This is also true for native Danes, but
the relative penalty for overeducation is much larger for
immigrants than for Danes.
Palabras clave
ADEQUATE EDUCATION, AGE GROUP, COUNTRIES OF ORIGIN, COUNTRY OF ORIGIN, DISMISSAL, EARLY RETIREMENT, ECONOMIC GROWTH, EDUCATED WORKERS, EDUCATION EXPENDITURE, EDUCATION LEVEL, EDUCATIONAL ATTAINMENT, EDUCATIONAL ATTAINMENTS, EDUCATIONAL LEVEL, EDUCATIONAL QUALITY, EDUCATIONAL REQUIREMENTS, EMPLOYEE, EMPLOYMENT, EMPLOYMENT RATES, ETHNIC GROUPS, FOREIGN EDUCATION, FORMAL EDUCATION, FORMAL SCHOOLING, FORMS OF DISCRIMINATION, HIGHER EDUCATION, HIGHER LEVEL OF EDUCATION, HOME COUNTRIES, HOST COUNTRIES, HOST COUNTRY, HUMAN CAPITAL, IMMIGRANT, IMMIGRANTS, IMMIGRATION, IMMIGRATION POLICY, INCOME INEQUALITIES, INVESTMENTS IN EDUCATION, JOB MATCH, JOB SKILL, JOB TRAINING, JOBS, LABOR DEMAND, LABOR MARKET, LABOR MARKET CONDITIONS, LABOR MARKET DISCRIMINATION, LABOR MARKET EXPERIENCE, LABOR MARKET PERFORMANCE, LABOUR, LABOUR MARKET, LABOUR MARKET EXPERIENCE, LABOUR MARKETS, LANGUAGE COURSES, LEARNING, LEGISLATORS, LET, LEVEL OF EDUCATION, LEVELS OF EDUCATION, LITERACY, LITERACY SKILLS, LOW LEVELS OF EDUCATION, LOWER LEVEL OF EDUCATION, MARITAL STATUS, MIGRATION, MINIMUM WAGES, MOBILITY, MOTHER, MOTHER TONGUE, NUMBER OF CHILDREN, OCCUPATION, ON-THE-JOB TRAINING, PAPERS, PAYING JOBS, PERMANENT JOBS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, PRESENT ANALYSIS, PRESENT STUDY, PREVIOUS JOB, PREVIOUS SECTION, PRIMARY SCHOOLING, PRODUCTIVITY LEVELS, PROGRESS, PUBLIC DEBATE, QUALITY OF EDUCATION, RETURNS TO EDUCATION, SECONDARY EDUCATION, SECONDARY SCHOOL, SECONDARY SCHOOL EDUCATION, SECONDARY SCHOOLING, SELF-ASSESSMENT, SEX, SKILL LEVEL, SKILL REQUIREMENTS, SKILLED OCCUPATIONS, SKILLED WORKERS, TERTIARY EDUCATION, TRAINING COSTS, UNDERACHIEVEMENT, UNEMPLOYMENT, UNEMPLOYMENT SPELLS, VOCATIONAL EDUCATION, WAGE EFFECTS, WORK EXPERIENCE, WORKER, WORKFORCE