Occupational Recognition and Immigrant Labor Market Outcomes

46 Pages Posted: 23 Jan 2019

See all articles by Herbert Brücker

Herbert Brücker

German Institute for Economic Research (DIW Berlin); IZA Institute of Labor Economics

Albrecht Glitz

Universitat Pompeu Fabra; Barcelona School of Economics; IPEG

Adrian Lerche

Universitat Pompeu Fabra

Agnese Romiti

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

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

JEL Classification: J15, J24, J44, J61

Suggested Citation

Brücker, Herbert and Glitz, Albrecht and Lerche, Adrian and Romiti, Agnese, Occupational Recognition and Immigrant Labor Market Outcomes. IZA Discussion Paper No. 12030, Available at SSRN: https://ssrn.com/abstract=3318804

Herbert Brücker (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Albrecht Glitz

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas, 25-27
Barcelona, E-08005
Spain

Barcelona School of Economics ( email )

Carrer de Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain

IPEG ( email )

Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain

Adrian Lerche

Universitat Pompeu Fabra

Agnese Romiti

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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