East versus West? Over-qualification and Earnings among the UK's European Migrants

Abstract

West and East Europeans have been important components of the migration flows into the UK in the last decade, but they remain largely under-studied. This paper utilises 12 quarters of the Labour Force Survey for the years 2002–2013 to examine patterns of over-qualification and their impact on those migrants' earnings. The findings show a clear and greater penalty for East Europeans. They were more likely than the majority White-British and West European migrants to be substantially over-qualified and have earned the lowest pay premium on their excess education. The East European migrants' double penalty is explained by their over-concentration in the secondary labour market where discrimination by employers, exploitation and lower rewards are common practices. Contrary to this, West European migrants enjoy a much better labour market position as they are able to successfully negotiate access to its primary sector.