Skill gaps between natives and immigrants in Europe: evidence from two cycles of PIAAC survey

The integration of immigrants into host societies is a widely debated issue with significant implications for host societies and economies. Unlocking immigrant human capital potential depends on the successful integration of immigrants and their children into the labor market and the society. The skills gap between immigrants and natives, including differences in qualifications and foundational skills, often hinders integration, limiting immigrants’ opportunities. Using data from the first and second PIAAC cycles, this work examines the skills gap in European countries, focusing on its persistence, reduction or expansion over time and between first- and second-generation immigrants. More specifically, it addresses literacy and numeracy skills as a measure of immigrants’ participation in the host social and economic context. This work explores the impact of factors such as one’s own or parents’ education and language barrier on literacy and numeracy performance, along with their impact on the migrant-native gap itself. It reveals the existence of a gap between immigrants’ and natives’ skills, with an immigrant disadvantage, more pronounced for the first generation and converging towards natives for the second generation. However, these trends vary over time, depending on the domain and country. This work provides useful insights to inform policies aimed at reducing disparities and promoting development in destination and origin countries.