The Effects of School Quality in the Origin on the Payoff to Schooling for Immigrants

51 Pages Posted: 26 Jul 2010

See all articles by Barry R. Chiswick

Barry R. Chiswick

University of Illinois at Chicago; IZA Institute of Labor Economics

Paul W. Miller

Curtin University of Technology - School of Economics and Finance; IZA Institute of Labor Economics; Curtin University - Centre for Research in Applied Economics

Abstract

The payoff to schooling among the foreign born in the US is only around one-half of the payoff for the native born. This paper examines whether this differential is related to the quality of the schooling immigrants acquired abroad. The paper uses the Over-education/ Required education/Under-education specification of the earnings equation to explore the transmission mechanism for the origin-country school quality effects. It also assesses the empirical merits of two alternative measures of the quality of schooling undertaken abroad. The results suggest that a higher quality of schooling acquired abroad is associated with a higher payoff to schooling among immigrants in the US labor market. This higher payoff is associated with a higher payoff to correctly matched schooling in the US, and a greater (in absolute value) penalty associated with years of under-education. A set of predictions is presented to assess the relative importance of these channels, and the over-education channel is shown to be the more influential factor. This channel is linked to greater positive selection in migration among those from countries with better quality school. In other words, it is the impact of origin country school quality on the immigrant selection process, rather than the quality of immigrantsï¾’ schooling per se, that is the major driver of the lower payoff to schooling among immigrants in the US.

Keywords: immigrants, schooling, school quality, earnings, selectivity

JEL Classification: I21, J24, J31, J61, F22

Suggested Citation

Chiswick, Barry R. and Miller, Paul W., The Effects of School Quality in the Origin on the Payoff to Schooling for Immigrants. IZA Discussion Paper No. 5075. Available at SSRN: https://ssrn.com/abstract=1648360

Barry R. Chiswick (Contact Author)

University of Illinois at Chicago ( email )

601 S. Morgan Street, Room 2103UH
Chicago, IL 60607-7121
United States
312-996-2683 (Phone)
312-996-3344 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Paul W. Miller

Curtin University of Technology - School of Economics and Finance ( email )

GPO Box U1987
Perth WA 6845
Australia

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
26
Abstract Views
304
PlumX Metrics