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Given that the comparison is made for those who work in matching jobs in terms of field of study without any deficit or surplus in their schooling, the results reflect the isolated returns to education after removing the impact of occupational mismatch, field of study specialization, and occupational upgrading.
Recent research has shown the importance of occupational upgrading for women in the recent British labour market (Lindley 2015).
In many countries, occupational upgrading has taken the form of an asymmetric polarisation of employment (Autor et al. 2003; Dustmann et al. 2009; Fernandez-Macias 2012; Salvatori 2015).
By contrast, men have experienced a notably lower level of occupational upgrading: for them, upgrading contributes only just under a half of the rise in graduate employment, the rest being due to upskilling within occupations.
These results further confirm that throughout the 1990s immigrants experienced substantial occupational upgrading, as they acquired local labor market skills and were able to convert part of their imported human capital into something valuable for Israeli employers.
This likely reflects the occupational upgrading of the FSU immigrants, a phenomenon which has already been studied extensively in the literature (Weiss, Sauer and Gotlibovsky, 2003; Eckstein and Weiss, 2002and 2002and
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The results point in the same direction: In countries and occupations with larger immigrant competition, natives are pushed to faster occupational upgrades and towards jobs, using more sophisticated skills, requiring higher education and yielding higher wages.
For instance, Lemieux (2014) estimated the effect of the above three factors on earnings and found that occupation upgrading and occupational matching (provided by the job field of the study match) collectively explain close to half of the conventionally measured return to education for native-born workers.
Still, many studies suggest the potential for upgrading occupational and other non-academic skills in ways that enhance earnings.
Smart employers will continue their investment in upgrading workers' occupational skills and knowledge and make a commensurate investment in teaching them a new set of skills and knowledge in career self-management.
In this case, economic globalization and the large immigration did not result in social polarization as conventional wisdom suggested because the localized welfare system successfully prevented local residents from engaging in 'the lower class' on the one hand and the developmental state intentionally upgraded the occupational structure with a selective openness regulation on the other.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com