Abstract
This chapter analyses immigrant-native human capital gap and factors behind it in fifteen European countries. It employs a broad definition of human capital, incorporating the general human capital and the specific human capital, which refers to the task-specific abilities accumulated and developed through performing certain job tasks. The chapter conducts a twofold analysis, relying on the Programme of International Assessment of Adult of Competencies (PIAAC). Firstly, it explores immigrant-native disparities in inner abilities, measured by the literacy and numeracy skills. Secondly, the research tackles the immigrant-native gaps in on-the-job use of cognitive skills, measured by self-reported intensity of literacy, numeracy and information and communication technology skills use at work. The results indicate that immigrants face a number of disadvantages that may persist independently of their inner abilities. Immigrant-native gaps in skills use at work indicate that immigrants are not sufficiently well assimilated in the European labour markets. Therefore, an underuse of immigrants’ skills and competencies is an important dimension of the immigrants’ integration issue.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Threshold was chosen arbitrary, as there is a considerable variation of share of immigrants across countries and the lowest shares are under 4%.
- 2.
All countries, except Greece and Slovenia, were surveyed in the first round (2011–2012). The latter countries were surveyed in 2014–2015. Survey wave is controlled for in the regression analysis.
- 3.
Different compositions of immigrant population across analyzed countries have to be acknowledged. Economic and social assimilation may be easier for certain immigration groups, for instance, for Slovaks in Czech Republic. Unfortunately, PIAAC data does specify a country of immigrant’s origin, therefore, we cannot precisely evaluate an origin-related assimilation heterogeneity.
- 4.
For detailed technical description of PIAAC dataset see: OECD (2013). ‘Technical Report on the Survey of Adult Skills (PIAAC)’, OECD Publishing. http://www.oecd.org/site/piaac/_Technical%20Report_17OCT13.pdf.
- 5.
All background questions used to derive skill use measures provide ordinal responses as follows: 1—‘never use’; 2—‘use less than once a month’; 3—‘use less than once a week, but at least once a month’; 4—‘use at least once a week, but not every day’; 5—‘use every day’.
- 6.
Number of Jackknife replications is determined by 80 replication weights multiplied by 10 plausible values, and additionally weighted by a single population weight per one plausible value (\(80 \times 10 + 1 \times 10\)).
- 7.
As a robustness checks, we estimated the identical model with literacy or numeracy skill controlled for. The results were robust.
References
Allen, J., Levels, M., & van der Velden, R. (2013). Skill mismatch and skill use in developed countries: Evidence from the PIAAC study. Research Centre for Education and the Labour Market, Maastricht University.
Backman, M. (2014). Human capital in firms and regions: Impact on firm productivity. Papers in Regional Science, 93(3), 557–575.
Ballot, G., FakhFakh, F., & Taymaz, E. (2001). Firms’ human capital, R&D and performance: A study on French and Swedish firms. Labour economics, 8(4), 443–462.
Barro, R. J. (2001). Human capital and growth. The American Economic Review, 91(2), 12–17.
Bartel, A. P., Beaulieu, N. D., Phibbs, C. S., & Stone, P. W. (2014). Human capital and productivity in a team environment: Evidence from the healthcare sector. American Economic Journal: Applied Economics, 231–259.
Basilio, L., Bauer, T. K., & Kramer, A. (2017). Transferability of human capital and immigrant assimilation: An analysis for Germany. Labour, 31(3), 245–264.
Becker, G. S. (1962). Investment in human capital: A theoretical analysis. Journal of Political Economy, 70(5, Part 2), 9–49.
Becker, G. S. (1994). Human capital revisited. In Human capital: A theoretical and empirical analysis with special reference to education (3rd ed.) (pp. 15–28). The University of Chicago Press.
Becker, G. S., Murphy, K. M., & Tamura, R. (1990). Human capital, fertility, and economic growth. Journal of Political Economy, 98(5, Part 2), S12–S37.
Beenstock, M., Chiswick, B. R., & Repetto, G. L. (2001). The effect of linguistic distance and country of origin on immigrant language skills: Application to Israel. International Migration, 39(3), 33–60.
Behtoui, A. (2008). Informal recruitment methods and disadvantages of immigrants in the Swedish labour market. Journal of ethnic and migration studies, 34(3), 411–430.
Benhabib, J., & Spiegel, M. M. (1994). The role of human capital in economic development evidence from aggregate cross-country data. Journal of Monetary economics, 34(2), 143–173.
Beyer, R. (2016). The labour market performance of immigrants in Germany. Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel—Session: Immigration and Labour Markets, No. D22–V3.
Black, S. E., & Lynch, L. M. (1996). Human-capital investments and productivity. The American Economic Review, 86(2), 263–267.
Blundell, R., Dearden, L., Meghir, C., & Sianesi, B. (1999). Human capital investment: The returns from education and training to the individual, the firm and the economy. Fiscal studies, 20(1), 1–23.
Bonikowska, A., Riddell, W. C., & Green, D. A. (2008). Literacy and the labour market: Cognitive skills and immigrant earnings. Ottawa: Statistics Canada.
Borjas, G. J. (1987). Self-selection and the earnings of immigrants. American Economic Review, 77(1), 531–553.
Borjas, G. J. (1991). Immigration policy, national origin, and immigrant skills: A comparison of Canada and the United States (No. w3691). National Bureau of Economic Research.
Borjas, G. J. (1992). Ethnic capital and intergenerational mobility. The Quarterly Journal of Economics, 107(1), 123–150.
Borjas, G. J. (2001). Does immigration grease the wheels of the labor market? Brookings Papers on Economic Activity, 2001(1), 69–119.
Borjas, G. J. (2015). Immigration and globalization: A review essay. Journal of Economic Literature, 53(4), 961–974.
Borjas, G. J. (Ed.). (2008). Issues in the economics of immigration. University of Chicago Press.
Boubtane, E., Dumont, J. C., & Rault, C. (2016). Immigration and economic growth in the OECD countries 1986–2006. Oxford Economic Papers: New Series, 68(2), 340–360.
Chiswick, B. R. (1978). The effect of Americanization on the earnings of foreign-born men. Journal of Political Economy, 86(5), 897–921.
Chiswick, B. R. (1999). Are immigrants favorably self-selected? The American Economic Review, 89(2), 181–185.
Chiswick, B. R., & Miller, P. W. (2003). The complementarity of language and other human capital: Immigrant earnings in Canada. Economics of Education review, 22(5), 469–480.
Chiswick, B. R., & Miller, P. W. (2009). The international transferability of immigrants’ human capital. Economics of Education Review, 28(2), 162–169.
Cortes, K. E. (2004). Are refugees different from economic immigrants? Some empirical evidence on the heterogeneity of immigrant groups in the United States. The Review of Economics and Statistics, 86(2), 465–480.
Coulombe, S., Grenier, G., & Nadeau, S. (2014). Human capital quality and the immigrant wage gap. IZA Journal of Migration, 3(1), 14.
De Haas, H., Czaika, M., Flahaux, M. L., Mahendra, E., Natter, K., Vezzoli, S., & Villares-Varela, M. (2019). International migration: Trends, determinants and policy effects. Population and Development Review (forthcoming).
Docquier, F., Ozden, Ç., & Peri, G. (2014). The labour market effects of immigration and emigration in OECD countries. The Economic Journal, 124(579), 1106–1145.
Dolado, J., Goria, A., & Ichino, A. (1994). Immigration, human capital and growth in the host country. Journal of population economics, 7(2), 193–215.
Duleep, H. O. (2007). Immigrant skill transferability and the propensity to invest in human capital. In Immigration (pp. 43–73). Emerald Group Publishing Limited.
Duleep, H. O., & Regets, M. C. (1999). Immigrants and human-capital investment. The American Economic Review, 89(2), 186–191.
Engelbrecht, H. J. (1997). International R&D spillovers, human capital and productivity in OECD economies: An empirical investigation. European Economic Review, 41(8), 1479–1488.
Ethier, W. J. (1986). Illegal immigration: The host-country problem. The American Economic Review, 76(1), 56–71.
Faggian, A., & McCann, P. (2008). Human capital, graduate migration and innovation in British regions. Cambridge Journal of Economics, 33(2), 317–333.
Foged, M., & Peri, G. (2016). Immigrants’ effect on native workers: New analysis on longitudinal data. American Economic Journal: Applied Economics, 8(2), 1–34.
Friedberg, R. M. (2000). You can’t take it with you? Immigrant assimilation and the portability of human capital. Journal of Labor Economics, 18(2), 221–251.
Friedberg, R. M., & Hunt, J. (1995). The impact of immigrants on host country wages, employment and growth. The Journal of Economic Perspectives, 9(2), 23–44.
Gathmann, C., & Schönberg, U. (2010). How general is human capital? A task-based approach. Journal of Labor Economics, 28(1), 1–49.
Gibbons, R., & Waldman, M. (2004). Task-specific human capital. American Economic Review, 94(2), 203–207.
Green, D. A., & Worswick, C. (2012). Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects. Labour Economics, 19(2), 241–259.
Haltiwanger, J. C., Lane, J. I., & Spletzer, J. R. (1999). Productivity differences across employers: The roles of employer size, age, and human capital. The American Economic Review, 89(2), 94–98.
Lee, D. W., & Lee, T. H. (1995). Human capital and economic growth tests based on the international evaluation of educational achievement. Economics Letters, 47(2), 219–225.
Mincer, J. (1984). Human capital and economic growth. Economics of Education Review, 3(3), 195–205.
Nelson, R. R., & Phelps, E. S. (1966). Investment in humans, technological diffusion, and economic growth. The American Economic Review, 56(1/2), 69–75.
Organisation for Economic Co-operation and Development (OECD). (2013). Technical report of the survey of adult skills (PIAAC).
Peri, G., & Sparber, C. (2011). Highly educated immigrants and native occupational choice. Industrial Relations, 50(3), 385–411.
Quillian, L. (2006). New approaches to understanding racial prejudice and discrimination. Annu. Rev. Sociol., 32, 299–328.
Reitz, J. G., Curtis, J., & Elrick, J. (2014). Immigrant skill utilization: Trends and policy issues. Journal of International Migration and Integration, 15(1), 1–26.
Sarvimäki, M., & Hämäläinen, K. (2016). Integrating immigrants: The impact of restructuring active labor market programs. Journal of Labor Economics, 34(2), 479–508.
Savvides, A., & Stengos, T. (2008). Human capital and economic growth. Stanford University Press.
Schultz, T. W. (1961). Investment in human capital. The American Economic Review, 51(1), 1–17.
Simonen, J., & McCann, P. (2008). Firm innovation: The influence of R&D cooperation and the geography of human capital inputs. Journal of Urban Economics, 64(1), 146–154.
Spence, M. (1974). Competitive and optimal responses to signals: An analysis of efficiency and distribution. Journal of Economic theory, 7(3), 296–332.
Sun, H., & Kim, G. (2014). Longitudinal evidence of firm size effect on wage premium and wage differential in Korean labor market. International Journal of Economic Sciences, 3(3), 66–85.
Sweetman, A. (2004). Immigrant Source Country Educational Quality and Canadian Labour Market Outcomes. In Catalogue 11F0019MIE, No. 234. (Ottawa: Analytical Studies Branch Research Paper Series) (pp. 1–45).
Tamura, R. (2006). Human capital and economic development. Journal of Development Economics, 79(1), 26–72.
Zibrowius, M. (2012). Convergence or divergence. Immigrant Wage Assimilation Patterns in Germany. SOEPpapers on Multidisciplinary Panel Data Research (p. 479).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Tverdostup, M., Paas, T. (2021). The General and the Task-Specific Human Capital of Migrants: Host Country Perspective. In: Kourtit, K., Newbold, B., Nijkamp, P., Partridge, M. (eds) The Economic Geography of Cross-Border Migration. Footprints of Regional Science(). Springer, Cham. https://doi.org/10.1007/978-3-030-48291-6_16
Download citation
DOI: https://doi.org/10.1007/978-3-030-48291-6_16
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-48290-9
Online ISBN: 978-3-030-48291-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)