Heterogeneity among migrants, education–occupation mismatch and returns to education

Abstract

Section A1Sensitivity check: Effect of changing the threshold for measurement of required education for an occupationWe have measured the sensitivity of EOM by using different thresholds over and below required years of education (measured by mean years of education). Please refer to Table A11 for detailed numbers.Using the threshold of one standard deviation over and below the mean years of education for the occupation categories, it is found that among the migrants, the match (adequate) was around 70 percent and the incidence of over and under educated individuals is 15 percent each.A change of threshold to 0.9 standard deviation reduces the adequately educated (match) to 63 percent for migrants. Also, the under and overeducated proportion increases to 17 and 20 percent, respectively. Now, changing the threshold to 1.1 standard deviation increases the incidence of adequately educated (match) to 78 percent, the undereducated to 11 percent, and the overeducated to 11 percent of the migrants.Lastly, using one standard deviation from median, we have found that the incidence of adequately educated (match) is 67 percent of migrants, the undereducated are 19 percent, and the overeducated are 14 percent.