Are over-qualified immigrants mismatched according to their actual skills? An international comparison of labor market placement in OECD countries

Abstract

"Previous research finds that immigrants are more often over-qualified than natives. Reasons can be imperfect transferability and signaling of skills. However, over-qualification does not necessarily imply that someone is over-skilled when it comes to actual skills and vice versa. The Programme for the International Assessment of Adult Competencies (PIAAC 2012) provides most recent data on basic skills of the working-age population. With this data I examine numeracy mismatch of first generation immigrants and natives in 13 OECD countries. My results suggest that especially non-native speaking immigrant workers have difficulties finding employment that aligns with their skill level. This results in genuine mismatch of immigrants, meaning that they are more often over-qualified than native workers and at the same time (comparing individuals at the same skill level) more often over-skilled. Hence, their skills are not put into effective use. These findings differ across occupations." (author's abstract)