Measuring labour market success: a comparison between immigrants and native-born Canadians using PIAAC

Canadian society is characterised by a plurality of immigrants and Canadian migration policy and corresponding recognition approaches are strongly geared to economic criteria, qualifications and skills. This paper addresses the question how immigrants who have acquired their highest qualification outside Canada are able to use their foreign qualifications and skills in their current job. The analyses are conducted to verify the assumptions of human capital theory as well as the lack of transferability of human capital across country borders. To answer these questions a labour market success index is developed, which is used as a dependent variable in regression models. The results show that traditional operationalisations of human capital (years of education, years of work experience and skills) have a positive effect on individual labour market success. At the same time, being born abroad and having acquired one’s highest qualification abroad in comparison to Canada, especially in a Non-Western country, has negative effects on the overall labour market success of an individual. Detailed comparisons regarding different indicators of labour market success also prove these comparatively negative effects. The results demonstrate the limited explanatory power of human capital theory and the necessity to complement it with Bourdieu’s concepts of social and cultural capital.     

The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey

The paper explores the incidence of over and under education and the effect on earnings for immigrants and natives who hold UK qualifications, drawn from the Quarterly Labour Force Survey 1993–2003. The paper also compares earnings penalties associated with over and under education across immigrant and minority ethnic groups for men and women. The results show that compared to Whites, Black African, Other Non-White and Indian men are more likely to be over-educated, whilst for women it is Indian and Pakistani/Bangladeshi's who are more likely to be over-educated. Estimating earnings equations shows significantly large over-education penalties for South Asian immigrant and native men, as well as White immigrant men, Black women and White UK born women. However, there are large returns to occupational skills for some minority ethnic and immigrant groups, over and above the returns to qualifications. It is suggested that these groups may therefore find it easier to find a suitable job for their UK education level if higher or further education programmes for immigrants were combined with occupational specific training.     

Economic returns to speaking ‘standard Mandarin’ among migrants in China's urban labour market

This article uses data from the China Urban Labour Survey administered across 12 cities in 2005 to estimate the economic returns to speaking standard Mandarin among internal migrants in China's urban labour market. The article builds on studies that estimate the economic returns to international immigrants of being fluent in the major language of the destination country and studies that estimate the economic returns to proficiency in the national language among groups of people who speak a minority language. Importantly, we control for potential endogeneity bias in the estimates of the effect of language fluency on earnings. We find that for migrants as a whole, there are considerable economic returns to speaking standard Mandarin. We also find gender differences. While the coefficient on fluency in standard Mandarin is statistically significant and large for females, the coefficient on fluency is statistically insignificant for males. One possible explanation for this finding is that female migrant workers are engaged more in occupations which have greater contact with urban locals and hence the return to investment in language skills is higher.     

Effort allocation in tournaments: The effect of gender on academic performance in Italian universities

We consider the academic performance of Italian university graduates and their labor market position 3 years after graduation. Our data confirm the common finding that female students outperform male students in academia but are overcome in the labor market. Assuming that academic competition is fair and that individual talent is equally distributed by gender, we suggest that the gender gap evident in degree scores is endogenously due to the greater effort exerted by female students. We find that females face a greater increase in labor market returns from signalling through academic performance. This higher prize explains the greater effort exerted by females and the higher probability of winning the academic competition.     

Limitations on the human capital transferability of adult migrants in Spain: Incentive or barrier for a new investment in education?

Many empirical studies on immigrant integration document the benefits of an education acquired in the country of destination. In this article; we study how the degree of human capital transferability affects an immigrant's chances of studying in Spain. We used data from the Spanish Labour Force Survey (2008–2015) for a sample of adults aged 18–55 who had left the educational system. The main findings show that natives are the ethnic group with the highest likelihood of re-enrolling in education. Amongst immigrants, those with fewer limitations on human capital transferability also invest more. These results question the predictions of the Immigrant Human Capital Investment model which expect that immigrants whose human capital depreciates upon arrival and those who can obtain a higher return on a new investment in education are therefore more likely to study. Moreover, the effect of skill transferability differs depending on the type of obstacle and the kind of education. Immigrants with less linguistic and cultural familiarity with the host country are less likely to undertake non-formal education than formal education. However, when the transferability obstacles are related to administrative requirements and legal restrictions, the probability of investing in non-formal education is higher. We conclude that immigrants with low skill transferability are not only less well integrated in the labour market upon arrival, but are also less able to redress that disadvantage through a new investment in education.     

Education and labor market risk: Understanding the role of data cleaning

This paper examines whether conclusions about the relationship between education and labor market risk depend on the use of commonly applied procedures to clean data of extreme values. The analysis uses fifteen years of data from the Panel Study of Income Dynamics to demonstrate that conclusions about the relationship between education and labor market risk are sensitive to how extreme values of labor income are treated. The untrimmed estimates imply that college graduates experience 75% less transitory labor market risk than high school dropouts. However, applying commonly used trimming procedures results in estimates of a one standard deviation transitory labor market shock for high school dropouts being reduced by between $2700 and $4500, or 14% and 24% of annual earnings. The results demonstrate that seemingly innocuous sample selection procedures can have substantive implications.     

The returns to UK degrees for foreign‐educated graduates

Exploiting information on foreign qualifications for the first time, we estimate the returns to obtaining UK higher degrees for foreign graduates who migrated to the UK in their 20s. Accounting for direct measures of foreign and UK qualifications and country‐of‐origin fixed effects, we find substantial returns to obtaining UK (higher) degrees on hourly wages and occupational attainment for both genders, working mainly through occupational attainment. However, there is strong evidence that the effect of the high returns is driven by immigrants from countries where English is not a dominant language. Moreover, returns to UK (higher) degrees are more pronounced for graduates from low‐HDI/GDP countries, suggesting an important role for the incompatibility of education and skills between home and destination countries. We further examine the robustness of our results by using a partial identification method, and our findings suggest that the extent of selection on unobservables required to eliminate a positive treatment effect is too large to be plausible, especially for men. Our study extends previous research with the first evidence from the UK, by showing large positive effects of post‐migration investments in human capital acquisition on labour market outcomes. Obtaining UK higher degrees appears to reduce the informational uncertainty associated with foreign credentials, facilitate cultural and economic assimilation, and boost economic opportunities for foreign graduates, especially for those developing/poor country immigrants.     

The spatial geography of teacher labor markets: Evidence from a developing country

An unequal distribution of teacher quality is a problem underlying the unequal distribution of educational outcomes in developing countries. However, we know little about how the labor market produces such a distribution. Using data from two regions in Peru, we investigate whether there is a national teacher market or smaller regional markets. We estimate discrete-choice multinomial models to identify variables (including teacher characteristics, institutional features and geographical factors) associated with the location of teachers in the first jobs of their careers. Results indicate that teacher markets are regional in scope. Being born in a certain province (sub-area of a region) substantially increases the probability of having a first teaching position in that same province. We also find evidence that the geographic mobility of teachers is quite limited. Results suggest that policies to strengthen teacher educational systems and reduce inequities should focus on the regional level.     

Degrees of closure and economic success in the Norwegian labour market: field of study and non-Western immigrant performance

This article compares outcomes in the Norwegian labour market for non-Western immigrants and majority colleagues with professional or master’s degrees within three different fields of study: health science, social science and natural science. Professions have a higher degree of occupational closure, which may entail that non-Western immigrants with relevant educations achieve economic parity with the majority. Comparing employment rates and income equality among professionals and others with a master’s degree tests whether the professions in each field yield more egalitarian outcomes. The fields are analysed separately and the results show that a professional degree in natural science or social science has no equalising effect. Education leading to a health profession provides immigrants with a ‘labour market shelter’.     

Long-term effects of school-starting-age rules

To study the long-term effects of school-starting-age rules in a setting with early ability tracking, we exploit the birth month threshold used in the Netherlands. We find that students born just after the threshold perform better at the end of primary school than students born just before it. This translates into increased placement in high ability tracks in secondary education. This difference diminishes gradually during subsequent stages, and we find no effect on the highest attained educational level. Those born just before the threshold enter the labor market somewhat younger and have therefore more labor market experience and higher earnings at any age until 40. We conclude that early ability tracking does not harm long-term outcomes of children who were, for exogenous reasons, placed in a lower track.     

(Em)Powered by Science? Estimating the Relative Labor Market Returns to Majoring in Science in High School in India

Despite widespread belief that majoring in science in high school has a greater payoff in the Indian labor market than majoring in business/humanities, there is no hard evidence to substantiate this thought. Here I provide the first evidence of the causal effect of majoring in science on individuals’ labor market outcomes relative to majoring in business/humanities using microdata from India. Estimating the causal effect, however, is a formidable task since selection into high school major is nonrandom and exclusion restrictions are unavailable. I circumvent these difficulties by employing an econometric technique that does not rely on valid exclusion restriction for identification. I find that majoring in science has a negative causal effect on individuals’ employment probability. Conditional on being employed, however, majoring in science has a positive causal effect on individuals’ earnings and probability of being engaged in a professional occupation. These findings suggest, in contrast to conventional wisdom, the labor market effects of majoring in science in high school in India is not a plain tale of ‘science premium’ - while majoring in science might lead to relatively better labor market outcomes for those who are able to find employment, finding employment itself is more difficult for science majors.     

Occupational knowledge and educational mobility: Evidence from the introduction of job information centers

This study examines the causal link between individuals' occupational knowledge and educational choices as well as labor market entry. We proxy occupational knowledge with mandatory visits to job information centers (JICs) in Germany while still attending school. Exogenous variation in the establishment of JICs makes it possible to estimate intention-to-treat effects in a difference-in-differences setup. Combining survey data with the data on JIC openings allows for detecting whether individuals benefited from the comprehensive information service. The results suggest that individuals who went to school in administrative districts with a JIC have higher educational attainments, experience educational upward mobility, and have a smoother transition to the labor market.     

Cultural transitioning of Jewish immigrants: Education, employment and integration

This paper discusses the cultural transitioning process that immigrants undergo in order to attain educational, occupational, and social integration within Canadian society. Results of this phenomenological study examining 31 Jewish immigrants from Argentina, Israel, France and the Former Soviet Union, reveal that lack of educational equivalency and lack of recognition of foreign work experience, language barriers, discrimination, insider/outsider sentiments and the structure of the community were common impediments to cultural transitioning. However, findings suggest that despite a common religious identity, immigrants’ ethnic identities and expectations lead to divergent cultural transitioning experiences.     

When does gender occupational segregation start? An experimental evaluation of the effects of gender and parental occupation in the apprenticeship labor market

The apprenticeship market is the earliest possible entry point into the workforce in developed economies. Since early labor market shocks are likely magnified throughout professional life, avoiding mismatches between talent and occupations – for example due to gender- or status-based discrimination – appears crucial. This experimental study investigates the effects of applicant gender and its interaction with parental occupation on the probability of receiving an invitation to an interview in the Swiss apprenticeship labor market. We find no robust evidence of differential treatment by employers in most cases. Policies aimed at fostering gender equality across occupations should therefore focus on removing gender related educational or cultural barriers influencing occupational choices at young ages.     

The effect of school inputs on labor market returns that account for selective migration

In this paper, I estimate the effect of state school inputs on labor market returns to schooling. The method follows Card and Krueger (1992) and Heckman et al. (1996), but I extend their analysis in two ways. First, I correct state-level returns to schooling for selective migration, adapting a method from Dahl (2002). Second, I use more recent data and assess the degree to which the 1999 labor market capitalized school inputs (with 2000 Census data). Higher state-level school inputs are associated with higher returns to schooling after correcting for selective migration. These positive effects are present in all Census years I study.     

国外农村劳动力转移教育培训的经验借鉴

本文介绍了在城镇化进程中国外农村劳动力转移教育培训的历史经验,特别是20世纪60年代后欧美和日本等发达国家的政府干预举措或政策措施,立足我国农村劳动力转移对教育与培训的多种需求,从国外经验或教训中,寻求借鉴和启示,在比较中提出了某些对策建议,加深了对科技进步与教育培训是农村劳动力良性转移的重要保证的认识,对有关决策和实践具有参考价值.     

城市群集聚经济与产业分工对外商直接投资区位选择影响的实证研究

运用面板数据,对2000—2005年中国13个城市群地级以上的城市实际利用外商直接投资额与集聚经济、成本和市场潜力、产业分工等因素之间的关系进行了定量分析。与以往研究不同,此研究区分了制造业的集聚经济、服务业的集聚经济、外商集聚经济和城市化经济等类型,并考察了产业专业化和多样性程度对外商直接投资的影响。结果表明,在其他因素相同的情况下,中国城市群的外商集聚经济、制造业集聚经济等地方化经济,以及城市化经济的增强均有利于吸引外商直接投资;信息成本较传统的生产要素成本对外商直接投资区位选择的影响更明显;城市产业分工状况也是影响外商直接投资在城市群区位选择的重要变量。当加入产业分工组织变量后,外商直接投资与城市产业专业化正相关,或与多样性负相关。     

Socioeconomic background,education, and labor force outcomes: evidence from a regional US sample

This paper examines the long-term association of family socioeconomic status (SES), educational, and labor force outcomes in a regional US longitudinal sample (N = 2264). The results offer insights into the mechanisms underlying the role of family SES in transitions from secondary schooling to early work experiences. It was found that the academic achievement gap associated with SES widens during secondary schooling due in part to course-level tracking. Family SES relates to college enrollment mainly via its association with academic gains in school, but also through family income and father’s occupational status. Family SES is weakly but significantly related to adult offspring’s earnings but more strongly related to occupational status. Educational qualifications and cognitive skills make independent contributions to the explanation of labor force outcomes.     

Youth Out of School and Out of Work in Latin America: A Cohort Approach

This paper examines the phenomena of high rates of youth that are out of school and out of work in Latin America. The analysis pursues a dynamic approach by constructing a pseudo-panel from 234 household surveys for 18 countries in the region that allow tracing the life cycle trajectories of different cohorts over time. The trajectories are associated with a series of variables characterizing the household, community, and macro environment in which schooling, and labor market participation decisions take place. The most important result obtained is that the persistently high rates of being out of school and out of work among males are strongly associated with greater shares of women working, which can be generating a “crowding out” effect against men, given slow job creation rates across the region. The analysis also explores the possibility of scarring effects, and finds that higher shares of out of school and out of work youth at ages 15-20 years are associated with lower wages for the same cohorts later in life, at ages 35–40 years, for males and females. As for employment prospects, the analysis finds scarring effects only for females, with greater out of school and out of work youth shares being related to lower proportions of women in the labor market later in the life cycle.     

Intensity of Occupational Training: Its Effects on Subsequent Labor Market Experiences

Abstract

This paper argues that public and proprietary, postsecondary occupational programs differ on an important dimension: intensity of occupational training, that is, the proportion of the curriculum devoted to providing job-specific skills. The study examined the labor market implications of matriculating in programs differing in intensity of occupational training. The compensation received by the graduates from the occupationally less intensive community college programs grew at a significantly faster rate relative to the income of the alumni from the more intensive proprietary schools. Only minor differences existed, however, between the subsamples with respect to the other variables used to examine their labor market experiences.