Effects of Foreign Education on Immigrant Earnings

This study explores the effects of foreign education on earnings. Previously, most research used indirect estimated information about foreign education, and documented the lower earnings of immigrants who had foreign education in comparison to those who had domestic education. Using direct information obtained from respondents of a recent survey, this research goes beyond the existing studies by suggesting three factors in earning discounts: (1) whether the highest level of education was received overseas, (2) the country where foreign education was received, and (3) name recognition of the foreign university. In addition, our study points out that social networks can reduce the foreign education discount, especially in nonprofessional occupations.