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The 2008 Trajectories and Origins survey forms the basis for a unique study on the socio economic integration of migrants in France. Instead of comparing immigrants to the general population, the focus is on understanding the factors influencing varying levels of employment and earnings among migrants, particularly examining the impact of pre-migration skills, including professional and language skills, offering valuable insights for shaping public policies on migrant labor market inclusion.
Since the 2000s, French migration policy has aimed to manage migration flows and enhance integration of immigrant labor. The Immigration Control Act of 2003 focused on curbing clandestine immigration, prompting the 2006 Immigration and Integration Act to align immigration with economic needs and absorption capacity. Concerns arose regarding the integration of ‘chosen’ immigrants into the labor market, particularly the role of pre-migration human capital transferability. Studies indicate that immigrants, on average, face challenges in employment and are often overqualified. Recognizing the importance of migrants’ pre-migration human capital, there is a need for effective immigration and integration policies in France. However, research on immigrant integration is hindered by a lack of comprehensive data on immigrants’ pre-migration situations. The Trajectories and Origins survey in France helps reconstruct immigrants’ employment and education before migration. This article uses survey data to measure skills acquired in origin countries, exploring their impact on integration quantitatively (employment) and qualitatively (earnings, matching work with imported human capital, and overqualification). The study emphasizes professional and general skills, assessing the success chances of immigrants without additional education in the host country and examining pre-migration factors influencing integration into the host country’s labor market.
Main factors for migrants’ economic integration: review of the literature
Numerous studies conducted since the early 1980s have explored the economic performance of migrants in host countries, with a particular focus on labor market inclusion as a key aspect of integration. The high costs associated with immigrant unemployment and overqualification have driven significant interest in this area. Research has addressed the likelihood of immigrants finding employment and the extent to which their professional skills match available jobs. Regardless of the approach, studies consistently indicate that integration is a time-consuming process, leading to short-term disadvantages for immigrants in terms of job access or job quality compared to native-born individuals. Long-term studies, notably Chiswick’s 1978 work, initially suggested immigrants could close earnings gaps within 10-15 years, but subsequent research revealed complexities related to cohort effects, panel data, and return migration. Recent findings show a U-shaped curve in immigrants’ labor market integration, with an initial phase of overqualification followed by improvement in job quality over time. The best-educated and those with top-level jobs in their home countries tend to catch up faster, although even long-term immigrants only partially narrow the earnings gap with native-born citizens. The economic literature generally concludes that immigrants’ human capital yields lower returns than that of native-born individuals, affecting factors such as employment access, earnings, and skill-matched jobs. However, variations exist based on host country, sociodemographic profile, and the purpose of migration. Many publications on immigrant integration explore the reasons behind these differences, identifying various factors contributing to skill-employment mismatches.
1- Specific national or regional features of human capital
Immigrants often face challenges in utilizing their acquired skills in the host country due to factors like language proficiency and recognition of foreign qualifications (Borjas, 1994; Chiswick and Miller, 2010; Ballarino & Panichella, 2015). This difficulty can result in immigrants securing jobs that require lower educational levels than their actual qualifications. Additionally, geographical variations in skill qualities at a given educational level contribute to the observed overeducation among immigrants. This overeducation is correlated with the development gap between the immigrants’ country of origin and the host country (Kiker et al., 2000; Sanroma et al., 2015; Fortin et al., 2016).
2- Asymmetry of information in the labour market
Both employers and immigrant workers face challenges due to information asymmetry, leading to a potential mismatch between skills and job opportunities. Employers often fail to recognize immigrants’ professional experience, causing them to accept overqualified positions initially. This phenomenon, known as the ‘search and match theory,’ is particularly prevalent among newly arrived immigrants and those from countries with different institutions and labor markets. Immigrants also encounter difficulties accessing information about available jobs and lack the social and professional networks enjoyed by native-born workers, limiting their choices and decision-making capabilities in the job market.
3- Liquidity constraints
In countries with low living standards and minimal welfare assistance for immigrants, the immediate need for financial resources forces newcomers to accept readily available but often low-skilled and poorly paid jobs. Discrimination, administrative hurdles, and the dual process of immigrant selection further complicate their employment prospects. Self-selection plays a role as migrants assess the costs and benefits of migration, influenced by factors such as work, family, or humanitarian reasons. Meanwhile, host countries increasingly impose selective criteria, setting quotas or considering skills and financial resources for entry. This is exemplified by the EU Blue Card in France. Pre-migration factors like education, work experience, language proficiency, and social networks are crucial for analyzing immigrant integration into the French labor market. The study focuses on identifying pre-migration human capital that facilitates integration, emphasizing the importance of short-term measures for guiding immigrants’ careers. It distinguishes between professional and general skills, exploring their roles in employment access, job quality, earnings, and professional recognition, aiming to assess the market value of the desired match between employment and skills.
Conclusion:
This article has two main objectives. Firstly, it seeks to evaluate the influence of immigrants’ pre-migration human capital, distinguishing between generally applicable skills and those specific to a profession, on their likelihood of securing employment in the host country. Additionally, the article examines the quality of immigrants’ integration by assessing the recognition of their skills in terms of socio-occupational status, skill sector alignment, and earnings.
The study finds that pre-migration human capital significantly impacts the probability of finding work, maintaining or advancing socio-occupational status, and earnings. Professional expertise and experience acquired before migration prove more valuable in the labor market than general skills. Surprisingly, higher education qualifications do not necessarily lead to better integration. Immigrants with specific professional skills in sectors such as health, electricity, electronics, hotels, restaurants, and transport integrate more easily.
Source:
Ukrayinchuk, N. & Chojnicki, X. (2020). Le rôle du capital humain prémigratoire dans l’intégration économique des immigrés en France : compétences métier vs compétences transversales. Population, 75, 325-357. https://doi.org/10.3917/popu.2002.0325