The Impact of Origin and Host Country Schooling on the Economic Performance of Immigrants

This study examines the economic returns to schooling acquired in the country of origin and the country of destination. It uses large-scale survey data on Turkish, Moroccan, Surinamese and Antillean immigrants in the Netherlands, which contain direct measures of pre- and post-migration schooling. It is studied whether the returns to origin-country schooling depend on contextual factors: i.e., immigrant group and the region of living. Furthermore, we examine the importance of host-country schooling for labor market outcomes and if these can be partly explained by increasing contacts with natives. Results show that the returns to origin-country schooling are higher for Surinamese and Antillean immigrants (i.e., those originating from former Dutch colonies) than for immigrants from Turkey and Morocco. The returns to origin-country schooling are not affected by ethnic concentration in the region of living. Finally, it appears that the returns to host-country schooling are much larger than to origin-country schooling, and the higher returns to host-country schooling cannot be explained by increased social contacts with natives.