Do immigrants gain or lose by occupational licensing?

This paper studies the effects of occupational licensing in Canada on the earnings of immigrants and nonimmigrants. 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.