The Wage Premium of Foreign Education: New Evidence from Australia

10 Pages Posted: 29 Nov 2013

See all articles by Massimiliano Tani

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

Christopher Heaton

Macquarie University - Department of Economics; UNSW Australia Business School, School of Economics

Gavin Chan

Government of Western Australia

Multiple version iconThere are 2 versions of this paper

Date Written: December 2013

Abstract

Using data from the Longitudinal Survey of Immigrants to Australia, we analyse if migrants' hourly earnings vary depending on where their education was attained. We find evidence of substantial variation in the returns from nominally equivalent qualifications obtained in different groups of countries. Bachelor degrees obtained in English‐speaking countries are associated with higher returns than equivalent qualifications earned elsewhere. For higher degrees and for technical diplomas and certificates, we find evidence of higher hourly wages for degrees earned in English‐speaking countries, but not in Australia or New Zealand and non‐English‐speaking countries. We discuss some policy implications of our results.

Suggested Citation

Tani, Massimiliano and Heaton, Chris and Chan, Gavin, The Wage Premium of Foreign Education: New Evidence from Australia (December 2013). Australian Economic Review, Vol. 46, Issue 4, pp. 395-404, 2013, Available at SSRN: https://ssrn.com/abstract=2361213 or http://dx.doi.org/10.1111/1467-8462.12024

Massimiliano Tani (Contact Author)

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

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

Chris Heaton

Macquarie University - Department of Economics ( email )

Sydney NSW 2109
Australia

UNSW Australia Business School, School of Economics

High Street
Sydney, NSW 2052
Australia

Gavin Chan

Government of Western Australia

Australia

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