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Does Certifying Foreign Qualifications Lead to Better Immigrant Skills Utilization?

Author

Listed:
  • Marco Pecoraro

    (University of Neuchatel)

  • Massimiliano Tani

    (University of New South Wales, IZA, and GLO)

Abstract

Using a novel panel dataset on recent immigrants in Switzerland, we study the relationship between the degree of skills utilization, the foreign-acquired education and its certification in the host country. We find that the relationship with foreign education is negative, especially when acquired in a non-EU country, in line with the literature documenting the imperfect international transferability of human capital. Obtaining a “Certificate of Equivalence” in Switzerland makes this relationship statistically non-significant: in other words, the certification enables immigrants to enjoy the same degree of skills utilization in the Swiss labour market as those with Swiss education. Additional results suggest that immigrants with a foreign but not Swiss-certified education keep the degree of skill utilization as high as it would be if they were Swiss educated when they obtain a job contract or job offer before migrating to Switzerland. These findings are robust to controlling for self-selection on unobserved characteristics.

Suggested Citation

  • Marco Pecoraro & Massimiliano Tani, 2023. "Does Certifying Foreign Qualifications Lead to Better Immigrant Skills Utilization?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(1), pages 291-322, November.
    • Handle: RePEc:spr:soinre:v:170:y:2023:i:1:d:10.1007_s11205-023-03069-x
    DOI: 10.1007/s11205-023-03069-x
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    More about this item

    Keywords

    Immigration; Qualifications; Recognition; Skills utilization; Labour market;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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