%0 Report %A Anger, Silke %A Bassetto, Jacopo %A Sandner, Malte %T Lifting Barriers to Skill Transferability: Immigrant Integration through Occupational Recognition %D 2024 %8 2024 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 17444 %U https://www.iza.org/publications/dp17444 %X While Western countries worry about labor shortages, their institutional barriers to skill transferability prevent immigrants from fully utilizing foreign qualifications. Combining administrative and survey data in a difference-in-differences design, we show that a German reform, which lifted these barriers for non-EU immigrants, led to a 15 percent increase in the share of immigrants with a recognized foreign qualification. Consequently, non-EU immigrants' employment and wages in licensed occupations (e.g., doctors) increased respectively by 18.6 and 4 percent, narrowing the gaps with EU immigrants. Despite the inflow of non-EU immigrants in these occupations, we find no evidence of crowding out or downward wage pressure for natives. %K skill transferability %K occupational recognition %K immigrant integration