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Evaluating Foreign Skills: Effects of Credential Assessment on Skilled Immigrants’ Labour Market Performance in Canada

Author

Listed:
  • Rupa Banerjee
  • Feng Hou
  • Jeffrey G. Reitz
  • Tingting Zhang

Abstract

Formal educational qualification is increasingly built into immigrant selection systems in many countries, but in a global context, the transferability and portability of such qualifications has been questioned. In 2013, Canada introduced the requirement for a formal assessment of educational credential equivalence for applicants in the skilled worker category. In this study, we use a Canadian national immigration database and difference-in-differences methodology to investigate whether requiring formal Educational Credential Assessment (ECA) as part of the selection process for skilled immigrants has improved labour market outcomes. Our results indicate that the ECA requirement is positively related to early employment rates and earnings for both men and women. However, this effect is limited to those with no previous employment experience in Canada. We also find that, even with the ECA requirement, significant differences in the earnings of immigrants from different source regions remain. Implications and recommendations are discussed.

Suggested Citation

  • Rupa Banerjee & Feng Hou & Jeffrey G. Reitz & Tingting Zhang, 2021. "Evaluating Foreign Skills: Effects of Credential Assessment on Skilled Immigrants’ Labour Market Performance in Canada," Canadian Public Policy, University of Toronto Press, vol. 47(3), pages 358-372, September.
  • Handle: RePEc:cpp:issued:v:47:y:2021:i:3:p:358-372
    DOI: 10.3138/cpp.2021-014
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    Cited by:

    1. Feng Hou & Garnett Picot, 2024. "Earnings of one-step and two-step economic immigrants: Comparisons from the arrival year," Economic and Social Reports 202400100006e, Statistics Canada, Analytical Studies and Modelling Branch.
    2. Rupa Banerjee, 2023. "Introduction to the Special Issue—Canada’s Economic Immigration Policy: Opportunities and Challenges for the Road Ahead," Journal of International Migration and Integration, Springer, vol. 24(3), pages 585-597, December.
    3. Garnett Picot & Feng Hou & Eden Crossman, 2023. "Do university-educated immigrants recover economically from a slow start?," Economic and Social Reports 202300500003e, Statistics Canada, Analytical Studies and Modelling Branch.
    4. Garnett Picot & Eden Crossman & Feng Hou, 2023. "Provincial Nominee Program: Recent trends and provincial differences in earnings outcomes," Economic and Social Reports 202301200004e, Statistics Canada, Analytical Studies and Modelling Branch.
    5. Jeffrey G. Reitz, 2023. "The Role of Employers in Selecting Highly Skilled Immigrants: Potentials and Limitations," Journal of International Migration and Integration, Springer, vol. 24(3), pages 621-639, December.

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