Evaluating Foreign Skills: Effects of Credential Assessment on Skilled Immigrants’ Labour Market Performance in Canada

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Abstract

Formal educational qualification is increasingly built into immigrant selection systems in many countries, but in a global context, the transferability and portability of such qualifications has been questioned. In 2013, Canada introduced the requirement for a formal assessment of educational credential equivalence for applicants in the skilled worker category. In this study, we use a Canadian national immigration database and difference-in-differences methodology to investigate whether requiring formal Educational Credential Assessment (ECA) as part of the selection process for skilled immigrants has improved labour market outcomes. Our results indicate that the ECA requirement is positively related to early employment rates and earnings for both men and women. However, this effect is limited to those with no previous employment experience in Canada. We also find that, even with the ECA requirement, significant differences in the earnings of immigrants from different source regions remain. Implications and recommendations are discussed.

Citation

Relevant Evidence Summaries

The evidence was reviewed and included in the following summaries: 

What strategies improve the outcomes of refugee women in employment programs?

This evidence summary, authored by Switchboard, summarizes the state of available evidence regarding strategies to improve the employment rates of refugee women in employment programs. Limited but growing evidence shows positive impacts of national policies on the employment rates of refugees. Canada’s Educational Credential Assessment requirement for economic migrants and private sponsorship programs has shown…

About this study

AGE: Adults

DIRECTION OF EVIDENCE: Positive impact

FULL TEXT AVAILABILITY: Paid

HOST COUNTRY: Canada

HOST COUNTRY INCOME: High

INTERVENTION DURATION: Not specified

INTERVENTION: Policy level

OUTCOME AREA: Employment>Employment Outcomes

POPULATION: Immigrants

REGION OF ORIGIN OF PARTICIPANT(S): Multiple Regions

STRENGTH OF EVIDENCE: Suggestive

TYPE OF STUDY: Suggestive evidence

YEAR PUBLISHED: 2021

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