Occupational regulation, institutions, and migrants' labor market outcomes

Koumenta, Maria ; Pagliero, Mario ; Rostam-Afschar, Davud

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DOI: https://doi.org/10.1016/j.labeco.2022.102250
URL: https://www.sciencedirect.com/science/article/pii/...
URN: urn:nbn:de:bsz:180-madoc-646061
Document Type: Article
Year of publication: 2022
The title of a journal, publication series: Labour Economics
Volume: 79
Issue number: Article 102250
Page range: 1-16
Place of publication: Amsterdam [u.a.]
Publishing house: Elsevier
ISSN: 0927-5371
Publication language: English
Institution: Business School > Sonstige - Fakultät für Betriebswirtschaftslehre
Business School > Sonstige - Area Accounting & Taxation
Pre-existing license: Creative Commons Attribution 4.0 International (CC BY 4.0)
Subject: 330 Economics
Abstract: We study how licensing, certification and unionisation affect the wages of natives and migrants and their representation among licensed, certified, and unionized workers. We provide evidence of a dual role of labor market institutions, which both screen workers based on unobservable characteristics and also provide them with wage setting power. Labor market institutions confer significant wage premia to native workers (4.0, 1.6, and 2.7 log points for licensing, certification, and unionization), due to screening and wage setting power. Wage premia are significantly larger for licensed and certified migrants (10.3 and 6.6 log points), reflecting a more intense screening of migrant than native workers. The representation of migrants among licensed (but not certified or unionized) workers is 15% lower than that of natives. This again implies a more intense screening of migrants by licensing institutions than by certification and unionization.

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