Abstract

This chapter compares immigrant and native skills in OECD countries and discusses whether immigration policy is effective in attracting immigrant skills to the host countries. It reviews the academic literature on the returns to immigrant skills in terms of labour market outcomes: employment, skill mismatch and wages, and emphasizes the importance of taking into account different measures of skills as well as the country where the skills were acquired. The chapter reviews two sets of explanatory factors for the lower returns to immigrant than to native skills: on the one hand, immigrants with similar skills to natives may in reality be less productive in the host country; and on the other hand, employers may prefer to hire natives than immigrants. The conclusion puts forward key policy questions and challenges.

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