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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”.