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Lifting Barriers to Skill Transferability: Immigrant Integration through Occupational Recognition

Author

Listed:
  • Silke Anger

    (Institute for Employment Research)

  • Jacopo Bassetto

    (University of Milan)

  • Malte Sandner

    (Nuremberg Institute for Technology)

Abstract

While Western countries worry about labor shortages, their institutional barriers to skill transferability prevent immigrants from fully utilizing foreign qualifications. Combining administrative and survey data in a difference-in-differences design, we show that a German reform, which lifted these barriers for non-EU immigrants, led to a 15 percent increase in the share of immigrants with a recognized foreign qualification. Consequently, non-EU immigrants’ employment and wages in licensed occupations (e.g., doctors) increased respectively by 18.6 and 4 percent, narrowing the gaps with EU immigrants. Despite the inflow of non-EU immigrants in these occupations, we find no evidence of crowding out or downward wage pressure for natives.

Suggested Citation

  • Silke Anger & Jacopo Bassetto & Malte Sandner, 2024. "Lifting Barriers to Skill Transferability: Immigrant Integration through Occupational Recognition," RF Berlin - CReAM Discussion Paper Series 2427, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:2427
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    More about this item

    Keywords

    Skill Transferability; Occupational Recognition; Immigrant Integration;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • F2 - International Economics - - International Factor Movements and International Business

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