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This paper examines the overeducation/undereducation and required (OUR) returns to education hypothesis among Caribbean immigrants in the United Sates labour market using the IPUMS 5% sample1. The results show that they receive lower returns than the native born despite being in the United States for some time. The methodology employed is somewhat different from the traditional approach, as an hierarchical model is used to account for the nesting of individuals within occupation or the presence of fixed effects due to occupation differences.