Including migrant skills in a knowledge economy: The politics of recognition of foreign qualifications, work experience and industry courses

Abstract

AbstractThe lack of skilled labour pushes mature knowledge economies towards importing skills. Previous studies have shown that migrants' economic and social integration in their host societies depend on the recognition of their skills. Yet, the degree to which the certificates of migrants and their practical experience are recognised and additional training is offered, is contested. Interests conflict not only between unions and employers, but also among employers and unions themselves. We argue that social partners' preferences on foreign qualification recognition (FQR), recognition of experience and industry‐wide training (in the following: FQR and related measures) are mainly determined by the existence of occupational labour markets. An occupational labour market segments the labour market and subsequently restricts access to these segments. FQR and related measures constitute a regulated avenue into these occupational labour markets, protecting these labour markets from an uncontrolled influx of workers. Empirically, this contribution compares whether and how hospitality and construction industries—two sectors that depend heavily on migrants and difficult to organise due to seasonal activity—recognise and remunerate foreign skills. The construction sector recognises and remunerates foreign skills to a much larger extent than the hospitality industry. Adopting the method of difference and based on expert interviews, the paper shows that the more social partners protect their domestic occupational labour market, the more they also support FQR and related measures. The article discusses the implications for migrants' wages and social inclusion, contributing to the analysis of socio‐economic tensions in mature knowledge economies.