Migrant–Native Skill Gaps in Europe: Evidence from two Cycles of PIAAC Surveys

Michaela Potancoková , International Institute for Applied Systems Analysis
Maria Paola Nicoletti Altimari, International Institute for Applied Systems Analysis
Claudia Reiter, Institute for Advanced Studies (IHS) Vienna; Vienna Institute of Demography, Austrian Academy of Sciences

Are skill gaps persistent or diminishing? We investigate the dynamics of literacy and numeracy skill gaps between immigrants and natives across eight European countries—Belgium, Finland, France, Germany, Ireland, Italy, Spain, and England—using two cycles of OECD’s Programme for the International Assessment of Adult Competencies (PIAAC) surveys. The study presents novel empirical evidence on the evolution of skill inequalities among working age adults.We adopt a cross-national and cross-temporal perspective to assess not only the persistence of immigrant–native skill gaps but also the heterogeneity by migrant generation and the determinants driving skill disparities. Descriptive analyses reveal a consistent immigrant disadvantage in functional literacy and numeracy across countries and over time although the magnitude and evolution of the gap vary. Importantly, much of the skill gap is explained by the compositional effects - particularly educational attainment and place of birth (G1 vs G2). Second-generation immigrants (G2) exhibit narrower gaps and signs of convergence with natives, particularly in Ireland, where G2 outperform natives in numeracy. Finland and England display a faster improvement among first-generation immigrants than among natives, while Belgium and Germany show divergent trends over time. Once controlling for demographics and SES in regressions, we don't find significant differences in migrant-native skill levels. Education—both individual and parental—emerges as the strongest determinant of skill outcomes, but linguistic barriers and barriers to education and employment significantly contribute to immigrants’ lower performance. The study highlights that skill acquisition and integration are jointly shaped by education, language proficiency, and labour market participation (use it or lose it).

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 Presented in Session 111. Migrant Populations and Assimilation over Generations