We utilise HILDA data over the period 2001–2005 to evaluate the performance of second-generation Greek-Australians and Italian-Australians in the labour market. We focus on the effect of overeducation, undereducation, languages-other-than-English (LOTE), and ethnicity on weekly earnings of full-time workers. The evidence is as follows: (a) most Greek-Australians are over-represented amongst the overeducated; (b) overeducation and overskilling can be attributed to a lack of new skills on the job, parental occupational status, non-English-speaking overseas born, and unobserved characteristics of second-generation females; (c) LOTE does not seem to make a contribution to earning of individual workers; and (d) the use of LOTE amongst the two second-generation groups has declined, though second-generation women in part-time employment are an exception.