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Table 6 Probit with sample selection estimates of over- and under-education (marginal effects) – Cohort 1&2, Wave 2 (17 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 -0.002 0.003 0.006 0.001
  [0.007] [0.007] [0.006] [0.006]
Age squared x 100 0.002 -0.004 -0.008 -0.003
  [0.009] [0.009] [0.007] [0.008]
Qualification assessed 0.026 0.030 -0.078 -0.099
  [0.016] [0.017]* [0.015]*** [0.017]***
Self-Employed -0.059 -0.055 0.118 0.092
  [0.019]*** [0.019]*** [0.028]*** [0.029]***
FHC: Non-English Speaking OECD 0.029 0.017 -0.014 0.021
  [0.029] [0.028] [0.020] [0.028]
FHC: South, East, South East Asia and Oceania 0.085 0.002 -0.060 -0.001
  [0.023]*** [0.021] [0.016]*** [0.022]
FHC: Sub-Saharan Africa -0.003 -0.041 0.004 0.099
  [0.033] [0.026] [0.026] [0.042]**
FHC: Other 0.107 0.021 -0.036 -0.010
  [0.029]*** [0.025] [0.019]* [0.025]
Visa type: Concessional Family/Skilled-Austr. Link -0.006 0.026 0.012 -0.028
  [0.020] [0.022] [0.022] [0.021]
Visa type: Business Skills & Empl. Nomination Scheme -0.147 -0.076 0.008 0.001
  [0.014]*** [0.021]*** [0.020] [0.024]
Visa type: Independent -0.079 -0.033 -0.046 -0.072
  [0.016]*** [0.019]* [0.018]** [0.019]***
Visa type: Humanitarian -0.036 -0.043 -0.030 -0.021
  [0.022] [0.021]** [0.021] [0.025]
Educ. mismatch FHC: not working -0.042   0.338  
  [0.019]**   [0.045]***  
Educ. mismatch FHC: over-educated 0.334   -0.073  
  [0.044]***   [0.021]***  
Educ. mismatch FHC: under-educated -0.154   0.565  
  [0.012]***   [0.027]***  
Educ. mismatch Wave 1: not working   0.210   0.221
   [0.023]***   [0.025]***
Educ. mismatch Wave 1: over-educated   0.657   -0.020
   [0.036]***   [0.031]
Educ. mismatch Wave 1: under-educated   -0.071   0.824
   [0.024]***   [0.022]***
Cohort 2 -0.011 0.014 0.062 0.045
  [0.014] [0.015] [0.016]*** [0.017]***
Regional fixed effects Yes Yes Yes Yes
Selection equation (Probability of being employed)     
Age 0.010 0.011 0.013 0.012
  [0.005]* [0.005]** [0.005]** [0.005]**
Age squared x 100 -0.019 -0.020 -0.022 -0.021
  [0.007]*** [0.007]*** [0.007]*** [0.007]***
Interview in English 0.062 0.065 0.083 0.087
  [0.018]*** [0.017]*** [0.019]*** [0.020]***
Visited Australia before immigration 0.084 0.078 0.081 0.082
  [0.014]*** [0.014]*** [0.015]*** [0.015]***
Visa type: Concessional Family/Skilled-Austr. Link 0.034 0.030 0.026 0.026
  [0.015]** [0.015]** [0.016]* [0.016]*
Visa type: Business Skills & Empl. Nomination Scheme 0.139 0.138 0.137 0.136
  [0.011]*** [0.011]*** [0.011]*** [0.011]***
Visa type: Independent 0.049 0.048 0.044 0.044
  [0.015]*** [0.015]*** [0.015]*** [0.015]***
Visa type: Humanitarian -0.170 -0.173 -0.165 -0.162
  [0.030]*** [0.030]*** [0.030]*** [0.030]***
Number of adults in household -0.010 -0.008 -0.010 -0.011
  [0.004]** [0.004]** [0.005]** [0.005]**
Children present 0.043 0.046 0.056 0.056
  [0.013]*** [0.013]*** [0.013]*** [0.013]***
HH owns car 0.118 0.117 0.124 0.122
  [0.020]*** [0.021]*** [0.022]*** [0.022]***
Cohort 2 0.067 0.065 0.060 0.059
  [0.012]*** [0.012]*** [0.012]*** [0.012]***
Regional fixed effects Yes Yes Yes Yes
Observations 2918 2918 2918 2918
Censored obs 497 497 497 497
Wald chi2 312.76 490.38 691.76 719.04
Log likelihood -1907.95 -1783.69 -1654.33 -1601.07
ρ 1.899 1.446 -0.002 0.258
  [1.165] [0.630]** [0.174] [0.212]
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”.