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Occupational Licensing and Skills Mismatches Among Immigrants and Natives in the United States

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  • Tani Massimiliano

    (School of Business, UNSW, Campbell, Australia)

Abstract

This paper studies the effect of occupational licensing on the education-occupation mismatches and the logarithm of hourly wages of natives and immigrants in the United States using longitudinal data from the 2014 sample of the Survey of Income and Program Participation (SIPP). On average, licensing reduces the skills mismatch and raises hourly wages among natives but not among immigrants. Over time there is only minimal convergence between the outcomes experienced by licensed natives and immigrants, highlighting that licensing does not produce uniform benefits, by immigrant status. Rather, it appears to institutionalize substantive differences in the quality of the skill matches and hourly pay of native and immigrant licensed workers and professionals.

Suggested Citation

  • Tani Massimiliano, 2023. "Occupational Licensing and Skills Mismatches Among Immigrants and Natives in the United States," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(3), pages 673-700, July.
    • Handle: RePEc:bpj:bejeap:v:23:y:2023:i:3:p:673-700:n:10
    DOI: 10.1515/bejeap-2022-0242
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    More about this item

    Keywords

    immigration; over-education; occupational licensing;
    All these keywords.

    JEL classification:

    • J8 - Labor and Demographic Economics - - Labor Standards
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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