Recognition increases job opportunities

Recognition not only increases employment opportunities, but also impacts positively on wages and salaries. Both effects are sustained over the long term. These are the findings of the recent IAB Brief Report – a study conducted by the Institute for Employment Research (Institut für Arbeitsmarkt- und Berufsforschung, IAB).

When compared to people without recognition, explains the study, recognition of a foreign professional qualification increases the employment opportunities of migrants after one year by 17 percentage points and after three years by 25 percentage points. After one year, the daily earnings of those with recognition are 8 percent higher than for those without a recognised vocational qualification. This difference increases over time: after three years it rises to 20 percent and then remains at an average of 16 percent. The 2017 evaluation of the Recognition Act had already shown similarly positive effects on employment.

As highlighted by the authors of the IAB study, the positive effects of recognition are not limited to just regulated professions: “In other professions also, recognised qualifications are a key criterion for employers when assessing the skills and competencies of migrants.”

Despite the positive effects, it is by no means the case that all migrants apply for recognition of their foreign professional qualification. The reasons for this are complex and, according to the study, point among other things to obstacles in the recognition procedure. Increased information, guidance and support could, in the view of the authors, help to harness even more effectively the potential offered by recognition.

“Recognition in Germany” offers information on recognition, on the procedure and on guidance options. The IAB Brief Report is available to download free of charge via the link below and from the media library in this portal.

More information

IAB Brief Report 2/2021 

Recognition Act evaluation report

Media library