You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital

Abstract

The national origin of an individual's human capital is a crucial determinant of its value. Education acquired abroad is significantly less valued than education obtained domestically. This difference can fully explain the earnings disadvantage of immigrants relative to comparable natives in Israel. Variation in the return to foreign schooling across origin countries may reflect differences in its quality and compatibility with the host labor market. Three factors language proficiency, domestic labor market experience, and further education following immigration appear to raise the return to education acquired abroad, suggesting a compound benefit of policies encouraging immigrants to obtain language and other training.