Occupational Recognition and Immigrant Labor Market Outcomes

Herbert Brücker (), Albrecht Glitz (), Adrian Lerche () and Agnese Romiti ()
Additional contact information
Herbert Brücker: Institute for Employment Research (IAB), Nuremberg
Adrian Lerche: Institute for Employment Research (IAB), Nuremberg

No 12030, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper, we analyze how the formal recognition of immigrants' foreign occupational qualifications affects their subsequent labor market outcomes. The empirical analysis is based on a novel German data set that links respondents' survey information to their administrative records, allowing us to observe immigrants at monthly intervals before, during and after their application for occupational recognition. Our findings show substantial employment and wage gains from occupational recognition. After three years, the full recognition of immigrants' foreign qualifications increases their employment rates by 24.5 percentage points and raises their hourly wages by 19.8 percent relative to immigrants without recognition. We show that the increase in employment is largely driven by a higher propensity to work in regulated occupations. Relating our findings to the economic assimilation of immigrants in Germany, we further document that occupational recognition leads to substantially faster convergence of immigrants' earnings to those of their native counterparts.

Keywords: occupational recognition; immigrants; labor markets (search for similar items in EconPapers)
JEL-codes: J15 J24 J44 J61 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2018-12
New Economics Papers: this item is included in nep-eur, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Journal of Labor Economics, 2021, 39 (2), 497-525

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Related works:
Journal Article: Occupational Recognition and Immigrant Labor Market Outcomes (2021)
Working Paper: Occupational Recognition and Immigrant Labor Market Outcomes (2018)
Working Paper: Occupational Recognition and Immigrant Labor Market Outcomes (2018)
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