TY - RPRT AU - Anger, Silke AU - Bassetto, Jacopo AU - Sandner, Malte TI - Lifting Barriers to Skill Transferability: Immigrant Integration through Occupational Recognition PY - 2024/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 17444 UR - https://www.iza.org/publications/dp17444 AB - 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. KW - skill transferability KW - occupational recognition KW - immigrant integration ER -