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Table 5 Probit with sample selection estimates of over- and under-education (marginal effects) – Cohort 1&2, Wave 1 (5 months after arrival)

From: Immigrant over- and under-education: the role of home country labour market experience

 

(1)

(2)

(3)

(4)

 

Over-education

Under-education

Age

0.021

0.006

0.001

-0.001

 

[0.008]

[0.009]

[0.006]

[0.006]

Age squared x 100

-0.009

-0.011

0.001

0.001

 

[0.011]

[0.012]

[0.008]

[0.008]

Qualification assessed

0.022

0.025

-0.069

-0.070

 

[0.019]

[0.020]

[0.016]***

[0.015]***

Self-Employed

-0.070

-0.077

0.144

0.155

 

[0.021]***

[0.023]***

[0.035]***

[0.036]***

FHC: Non-English Speaking OECD

 

0.019

 

-0.025

  

[0.032]

 

[0.017]

FHC: South, East, South East Asia and Oceania

 

0.133

 

-0.055

  

[0.029]***

 

[0.015]***

FHC: Sub-Saharan Africa

 

0.092

 

-0.003

  

[0.047]*

 

[0.024]

FHC: Other

 

0.135

 

-0.027

  

[0.041]***

 

[0.020]

Visa type: Concessional Family/Skilled-Austr. Link

0.012

-0.008

-0.002

0.005

 

[0.022]

[0.024]

[0.022]

[0.022]

Visa type: Business Skills & Empl. Nomination Scheme

-0.163

-0.171

0.009

0.006

 

[0.016]***

[0.016]***

[0.020]

[0.019]

Visa type: Independent

-0.055

-0.075

-0.035

-0.030

 

[0.018]***

[0.020]***

[0.019]*

[0.018]*

Visa type: Humanitarian

-0.013

-0.011

-0.032

-0.034

 

[0.044]

[0.049]

[0.026]

[0.025]

Educ. mismatch FHC: not working

0.009

-0.002

0.287

0.305

 

[0.026]

[0.027]

[0.046]***

[0.048]***

Educ. mismatch FHC: over-educated

0.453

0.477

-0.077

-0.072

 

[0.048]***

[0.046]***

[0.020]***

[0.020]***

Educ. mismatch FHC: under-educated

-0.138

-0.151

0.617

0.617

 

[0.016]***

[0.017]***

[0.030]***

[0.031]***

Cohort 2

-0.030

-0.039

0.018

0.018

 

[0.015]**

[0.016]**

[0.015]

[0.015]

Regional fixed effects

Yes

Yes

Yes

Yes

Selection equation (Probability of being employed)

    

Age

0.000

0.001

0.001

0.001

 

[0.009]

[0.009]

[0.009]

[0.009]

Age squared x 100

-0.014

-0.014

-0.015

-0.015

 

[0.011]

[0.011]

[0.011]

[0.011]

Interview in English

0.065

0.068

0.071

0.071

 

[0.025]***

[0.025]***

[0.025]***

[0.025]***

Visited Australia before immigration

0.090

0.083

0.082

0.082

 

[0.020]***

[0.021]***

[0.021]***

[0.021]***

Visa type: Concessional Family/Skilled-Austr. Link

0.075

0.074

0.074

0.074

 

[0.023]***

[0.023]***

[0.023]***

[0.023]***

Visa type: Business Skills & Empl. Nomination Scheme

0.334

0.335

0.335

0.335

 

[0.014]***

[0.014]***

[0.014]***

[0.014]***

Visa type: Independent

0.082

0.081

0.080

0.080

 

[0.023]***

[0.023]***

[0.023]***

[0.023]***

Visa type: Humanitarian

-0.305

-0.310

-0.312

-0.312

 

[0.041]***

[0.041]***

[0.041]***

[0.041]***

Number of adults in household

-0.027

-0.027

-0.028

-0.028

 

[0.006]***

[0.006]***

[0.006]***

[0.006]***

Children present

0.051

0.055

0.061

0.060

 

[0.020]***

[0.020]***

[0.020]***

[0.020]***

HH owns car

0.151

0.148

0.144

0.144

 

[0.022]***

[0.023]***

[0.023]***

[0.023]***

Cohort 2

0.144

0.143

0.142

0.142

 

[0.018]***

[0.018]***

[0.018]***

[0.018]***

Regional fixed effects

Yes

Yes

Yes

Yes

Observations

3048

3048

3048

3048

Censored obs

962

962

962

962

Wald chi2

282.40

297.03

656.87

654.29

Log likelihood

-2138.46

-2120.38

-1915.63

-1909.17

ρ

0.803

0.381

-0.105

-0.049

 

[0.312]**

[0.326]

[0.149]

[0.152]

Standard errors in brackets

    

* significant at 10%; ** significant at 5%; *** significant at 1%

    
  1. Note: The base group for “Formal Home Country” (FHC) is “English speaking OECD”; for “Visa type” the base group is “Preferential Family/ Family Stream”; and for “Education mismatch FHC” the base group is “Correctly matched”.
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