Occupational recognition and immigrant labor market outcomes

Herbert Brücker, Albrecht Glitz, Adrian Lerche , Agnese Romiti

Research output: Contribution to journalArticle

Abstract

We analyze how the formal recognition of foreign qualifications affects immigrants’ 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 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.
Original languageEnglish
JournalJournal of Labor Economics
Early online date7 Jul 2020
DOIs
Publication statusE-pub ahead of print - 7 Jul 2020

Keywords

  • immigration
  • labour market outcomes
  • employment trends
  • immigrant earnings

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