This study utilises HILDA data to evaluate the performance of second generation
Australians in full-time employment over the period 2001-2005. Attention is paid to
the effects and key drivers of overeducation and overskilling. Quantile regression is
employed to account for non-random sample selection. The evidence provides
several new insights: (a) Greek-Australians are overeducated; (b) Asian languages
and Chinese or Vietnamese ancestry associate with a wage premium; (c) the returns
to tertiary education, overeducation and overskilling very with ability; (d) parental
occupational status is a key determinant of overeducation; and (e) lack of employer
provision for new skills and personality traits are important drivers of overskilling.