The Importance of Skills and Qualifications for College-Educated Immigrants’ Economic Integration

Using combined data from the 2012, 2014, and 2017 PIAAC surveys, this study by researchers at the Migration Policy Institute looks at the progress of immigrant college graduates’ economic integration in the U.S., probing the relationship between economic outcomes and literacy, numeracy, and digital skills. Although U.S. immigrants' education levels have been rising in the past decade, this trend has not always translated into occupational gains. The study does find that immigrants are overrepresented among college-educated adults relative to their share of the U.S. population (17% vs. 14%), are more likely to hold advanced degrees, and are more likely to have degrees in STEM and health fields. Full-time college-educated immigrant workers in fact have higher monthly earnings ($7,140) than U.S. born workers ($6,500). At the same time, many immigrant college graduates experience high levels of skill underutilization, working in low-skilled jobs or remaining unemployed, especially those with degrees from outside the U.S. The PIACC data also show that immigrants’ economic outcomes are particularly sensitive to English proficiency levels, with immigrants with low literacy levels four times more likely to be underutilized than those with high scores. This is a particular challenge for immigrants with degrees from abroad, whose scores across all skill domains lag behind those of U.S.-educated immigrants. Regression analysis showed higher spoken English proficiency among all college-educated immigrants strongly associated with better economic outcomes. In an era of shortages of skilled workers, the authors conclude, policies that help boost English language skills among this population can remove a major obstacle to their economic mobility. (Jeffrey Gross, Ph.D.)

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