Immigrants’ educational mismatch and the penalty of over-education

This paper analyses immigrants’ educational mismatch and its impact on wages in Spain. The incidence of immigrants’ education–occupation mismatch in the Spanish labour market can largely be explained by the mismatch in the last job held in the home country. The probability of having been over-educated in the home country has a higher effect on the probability of being over-educated in the first job in Spain. Those who were over-educated in their first job are more likely to continue being over-educated in their current job in Spain. Finally, over-educated immigrants earn significantly lower wages compared to their non-over-educated counterparts.