Immigrant over-education: evidence from Denmark

This paper uses register-based panel data to examine over-education amongst immigrants in Denmark. Foreign-educated immigrants are found to be more prone to over-education than both native Danes and immigrants educated in Denmark. Labour market experience reduces this risk, whereas periods of unemployment make a person more likely to accept a job for which he is over-qualified. Over-educated workers earn slightly more than their adequately matched colleagues, but less than if they had been appropriately matched in a higher level job. Foreign-educated immigrants gain the least from over-education.