Abstract
The incidence of educational mismatch and the costs resulting thereof, are examined from theperspective of gender and nativity status, using Canadian census data. Mismatches arise whenindividuals are “over-educated” or “under-educated” relative to the normal levels of educationin their occupation of employment. We first estimate a multinomial logit to assess thelikelihood of educational mismatch, and examine the role gender, nativity status and, forforeign-born, language ability and length of residence in Canada, play in this regard. We thenestimate earnings functions, generalized to model educational mismatches, to estimate thecosts resulting from such mismatches, and to examine whether those costs vary across new andestablished foreign-born, and what role gender plays in this regard; also examined is thequestion of whether that penalty for foreign-born converges towards the same level as that ofnative-born, as the length of residence in Canada increases.
Highlights
This study examines the incidence of educational mismatch, and the impact, thereof, on earnings, from the perspective of gender and nativity status
We first estimate a multinomial logit to assess the likelihood of educational mismatch, and examine the role gender, nativity status and, for foreign-born, language ability and length of residence in Canada, play in this regard
We estimate earnings functions, generalized to model educational mismatches, to estimate the costs resulting from such mismatches, and to examine whether those costs vary across new and established foreign-born, and what role gender plays in this regard; examined is the question of whether that penalty for foreign-born converges towards the same level as that of native-born, as the length of residence in Canada increases
Summary
This study examines the incidence of educational mismatch, and the impact, thereof, on earnings, from the perspective of gender and nativity status. We first provide some evidence relating to the first question, and turn to estimate the penalties associated with mismatches With regard to the latter question, we examine whether the earning penalty differs among new and established foreign-born, and what role gender plays in this regard; examined is the question of whether that penalty for foreign-born converges towards the same level as that of native-born men and women, as the length of residence in Canada increases. While the issue of penalties that result from mismatch has recently been examined for Canada by Chiswick and Miller (2009a), these authors use a single cross-section to examine the issue of foreign-born convergence to native-born levels This approach suffers from well-known difficulties; a second contribution of this paper is that we use a better alternative approach to this question. The incidence of over, under, and correctly-matched education by gender, across native-born and foreign-born groups, is examined by estimating a multinomial model that classifies individuals according to whether they are over-educated, under-educated, or correctly matched, while the estimation of penalties is based on the commonly-used earnings function, modified to incorporate the effects of educational mismatch, along the lines suggested by Hartog (2000)
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