The impact of credential recognition: Evidence from Venezuelan health professionals in Peru

In 2020, amidst the COVID-19 crisis, the Peruvian government implemented a policy recognizing the foreign medical qualifications of immigrant health care workers. This study analyzes the labor market performance of Venezuelan health professionals with respect to other Venezuelans with university-level qualifications between 2018 and 2022. The findings show that health professionals experienced a marked improvement in their wages, significantly outperforming their fellow immigrants in sectors such as law and education. The analysis finds that compared to native Peruvian health professionals, Venezuelan health professionals experienced the highest positive impact on their income of all university-level professionals. However, although the effect is robust and statistically significant in the full sample and preferred specifications, it is not significant under alternative sampling restrictions. The study argues that the increased income of Venezuelan health professionals is related to the effectiveness of credential recognition policies in boosting the earnings of immigrants.