Over-education and immigrant earnings: a penalized quantile panel regression analysis

Despite evidence that immigrants experience a higher incidence of over-education, relatively few studies have considered the labour market outcomes over-education for immigrants. Using longitudinal data and penalized quantile panel regression, we inspect earnings effects job mismatches in Australia. This first application method to this question addresses both individual distributional heterogeneity. Results confirm divergent across distribution. Immigrants from non-English speaking countries lower returns substantial penalty up 25% educational mismatched employment. However, contrast conventional findings based on regression at mean, highest quantile, Australian-born with host country qualification receive premiums 2.7 11%, respectively, years over-education. We discuss policy implications new result.