Do Immigrants Gain or Lose by Occupational Licensing?

This paper studies the effects of occupational licensing in Canada on the earnings of immigrants and non-immigrants. The econometric model is estimated for immigrants and non-immigrants as well as between joiners and leavers from occupationally licensed jobs using a large panel data set. The results suggest that occupational licensing raises wages more for immigrant workers than for non-immigrants with similar observed characteristics. However, the probability of being in an occupationally licensed job is lower for immigrants as compared to non-immigrants. The implications of these findings for whether immigrants gain or lose from occupational licensing are discussed.