Produced by the Research Support TeamAbstractThe Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about developmentissues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry thenames of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely thoseof the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank andits affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.Policy Research Working Paper11162In 2020, amidst the COVID-19 crisis, the Peruvian gov-ernment implemented a policy recognizing the foreignmedical qualifications of immigrant health care work-ers. This study analyzes the labor market performance ofVenezuelan health professionals with respect to other Ven-ezuelans with university-level qualifications between 2018and 2022. The findings show that health professionals expe-rienced a marked improvement in their wages, significantlyoutperforming their fellow immigrants in sectors such aslaw and education. The analysis finds that compared toThis paper is a product of the Poverty and Equity Global Department and the Social Protection and Labor GlobalDepartment.. It is part of a larger effort by the World Bank to provide open access to its research and make a contributionto development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp. The authors may be contacted at j.torresgomez@up.edu.p, gcanavire@worldbank.org, andpacosta@worldbank.org. native Peruvian health professionals, Venezuelan healthprofessionals experienced the highest positive impact ontheir income of all university-level professionals. However,although the effect is robust and statistically significant inthe full sample and preferred specifications, it is not sig-nificant under alternative sampling restrictions. The studyargues that the increased income of Venezuelan healthprofessionals is related to the effectiveness of credentialrecognition policies in boosting the earnings of immigrants. TheImpactofTitleRecognition:EvidencefromVenezuelanHealthProfessionalsinPeru*JavierTorres†,PabloAcosta‡,andGustavoCanavire-Bacarreza§Keywords:Immigration,EconomicAssimilation,WageDiscount.JELClassification:J15,J24,J31,J70.This paper is a product of the Poverty and Equity and the Social Protection and Labor Global Practices. It is part of a larger effortby the World Bank to provide open access to its research and make a contribution to development policy discussions around the world.Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/prwp. The author(s) may be contacted atj.torresgomez@up.edu.p, gcanavire@worldbank.org, and pacosta@worldbank.org. The opinions expressed in this study are those ofthe authors and do not necessarily reflect the views of the World Bank, its Board of Directors, or the countries it represents. The authorsthank Janice Mamani for their superb research assistance.Corresponding Author. Universidad del Pacifico, Department of Economics, Lima, Peru. Email: j.torresgomez@up.edu.peWorld Bank, Washington, DC, USA. Email: pacosta@worldbank.orgWorld Bank, Washington, DC, USA and Universidad Privada Boliviana, La Paz, Bolivia. Email: gcanavire@worldbank.org 1IntroductionHuman capital is difficult to transfer to another country (Friedberg (2000)). Imperfect skill recog-nition is the most commonly offered explanation, about which several studies have written (forexample, Friedberg (1992), Friedberg (2000), Chiswick and Miller (2008), Nielsen (2011)). Addi-tional factors mentioned in the literature are lower quality of education (and work experience) inthe home country (Piracha et al. (2012)), Green and McIntosh (2007), Ferrer et al. (2006)), discrim-ination against foreign workers (Oreopoulos (2011), Weichselbaumer (2017)) and language andculture (Chiswick and Miller (2003), Chiswick and Miller (2010)).More narrowly, a problem that immigrants face is that certain occupations, such as medicine,law, and teaching, require professionals to obtain national certifications in order to work in thelocal labor market. Recent studies on this topic include Tani (2017), Kleiner (2017), Brücker et al.(2021), Kugler and Sauer (2005), and Gomez et al. (2015).Among them, Kleiner (2017) provides a comprehensive overview of the influence of occupa-tional licenses and regulations, synthesizing findings from various academic studies and empiricalevidence. This author highlights that for migrants, working in a universally licensed occupationcan increase hourly earnings by 8 to 15 percent compared to unlicensed individuals with simi-lar education and skills.Those in high-wage occupations, such as doc