Occupational regulation, institutions, and migrants' labor market outcomes

Maria Koumenta, Mario Pagliero and Davud Rostam-Afschar

No 02-2022, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences

Abstract: We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Labor market institutions confer significant wage premia to native workers (3.9, 1.6, and 2.7 log points for licensing, certification, and unionization respectively), due to screening and wage setting power. Wage premia are significantly larger for licensed and certified migrants (10.2 and 6.6 log points), reflecting a more intense screening of migrant than native workers. The representation of migrants among licensed (but not certified or unionized) workers is 14% lower than that of natives. This implies a more intense screening of migrants by licensing institutions than by certification and unionization.

Keywords: Arbeitsmarkt; Lohn; Zuwanderung; Occupational; regulation; Licensing; Certification; Unionization; Migration; Wages (search for similar items in EconPapers)
JEL-codes: J16 J31 J44 J61 J71 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-int and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Occupational Regulation, Institutions, and Migrants’ Labor Market Outcomes (2022)
Working Paper: Occupational Regulation, Institutions, and Migrants' Labor Market Outcomes (2022)
Working Paper: Occupational Regulation, Institutions, and Migrants' Labor Market Outcomes (2022)
Working Paper: Occupational Regulation, Institutions, and Migrants' Labor Market Outcomes (2022)
Working Paper: Occupational Regulation, Institutions, and Migrants' Labor Market Outcomes (2022)
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