The Impact of Recognizing Foreign Occupational Credentials on Long-Term Labor Market Outcomes in Canada | WIP Seminar with TingTing Zhang

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Meeting ID: 834 9822 7883

Abstract: Numerous studies have shown that recognizing occupational credentials can mitigate wage disparities among vulnerable worker groups. Consequently, Canadian federal and provincial governments have advised professional associations on establishing alternative pathways for recognizing foreign occupational credentials to ease immigrants’ integration into the labor market. However, the effectiveness of such policy efforts has not been empirically evaluated. By linking a representative immigration survey with longitudinal administrative records, I examined whether immigrants whose foreign occupational credentials were accepted in Canada had better earnings than those without such credentials upon arrival. The sample was divided into four groups: immigrants without any occupational credentials before and after landing (the baseline group), immigrants with a foreign occupational credential that was accepted in Canada, immigrants with foreign occupational credentials that were not accepted in Canada, and immigrants who acquired a Canadian occupational credential after landing. Growth curve modeling results show that, compared to the baseline group, immigrants with recognized foreign credentials earned lower earnings, while those with Canadian occupational credentials earned significantly higher earnings. These earning gaps persisted over time. The findings suggest that human capital and monopoly theories may not adequately explain the earnings premiums associated with occupational credentials, including both licensure and certification.

Our CIRHR Work-In-Progress Seminar series allows members of our community to discuss early-stage research. Future guest speakers include:

• When do employers update their recruitment behavior based on interview outcomes?
  April 3, Santiago Campero, CIRHR Assistant Professor
   
• The Gender Wage Gap and Redistribution
  April 10, Kourtney Koebel, CIRHR Sessional Lecturer