How Credential Recognition Transformed Migrant Health Workers’ Lives in Peru

The World Bank’s Policy Research Working Paper No. 11162, authored by Javier Torres, Pablo Acosta, and Gustavo Canavire-Bacarreza, delivers a compelling account of how emergency policies enacted during the COVID-19 pandemic impacted the livelihoods of Venezuelan health professionals in Peru. This research was carried out by the World Bank’s Poverty and Equity Global Practice and Social Protection and Labor Global Practice, in collaboration with Universidad del Pacífico in Lima and Universidad Privada Boliviana. Amid a devastating health crisis, Peru took the bold step of recognizing the foreign medical credentials of thousands of Venezuelan doctors, nurses, and medical technologists who had fled the economic collapse in their home country. This move, essentially a fast-tracked credential recognition policy, offered a lifeline to both the Peruvian healthcare system and the displaced professionals. The study uses this rare policy window as a natural experiment to understand the long-term economic impacts of such recognition on immigrant earnings and labor market integration.

A Policy Shift That Changed Lives

In response to the escalating public health emergency, Peru introduced a series of legal instruments, such as Emergency Decree No. 037-2020 and Decree No. 090-2020, waiving traditional licensing requirements for foreign-trained health professionals. These decrees allowed thousands of Venezuelan migrants to be swiftly absorbed into the Peruvian healthcare system. They were permitted to work without revalidating their degrees or obtaining professional licensure, with a grace period to complete those processes post-crisis. This reform was lauded by organizations such as Médicos de Unión Venezolana en Perú, which described it as a critical step in harnessing the expertise of Venezuelan doctors who were already active in informal or support roles. The question the researchers sought to answer was simple but profound: did this policy shift actually translate into better economic outcomes for those professionals?

Evidence from Two Nations: Data and Methods

To answer that question, the authors used data from two key Peruvian national surveys: ENPOVE, which tracks the Venezuelan migrant population, and ENAHO, which captures household data from native Peruvians. These surveys offered rich insights into educational backgrounds, professional experience, income levels, and occupational fields. The analysis was limited to working-age individuals (25 to 74 years old) with university-level degrees. The dataset comprised 1,861 observations, including both 2018 (pre-pandemic) and 2022 (post-reform) survey rounds. The research relied on advanced econometric techniques, particularly difference-in-differences (DID) and triple-difference (DDD) models, to compare wage trends among different groups. The focus was on understanding how Venezuelan health professionals fared compared to their compatriots in other professions, such as law, finance, education, and science, and also in comparison to native Peruvian professionals.

The Numbers Tell a Powerful Story

The results of the analysis are striking. Between 2018 and 2022, Venezuelan health professionals experienced a wage increase of approximately 35 log points, translating into a substantial income boost not matched by their peers in other sectors. These gains remained robust even after controlling for gender, region, education level, and work permit status. Compared to Venezuelan lawyers and educators, who saw either stagnant or declining wages, health professionals benefited clearly and directly from the credential recognition policies. Graphs and regression tables throughout the study, such as those on pages 14, 18, and 22, show that the wage gains for health professionals far outpaced other groups. Importantly, the study found that the income increase was not merely a reflection of general economic improvement or inflation. When the researchers compared native Peruvian health professionals to their Venezuelan counterparts, they found that the wage growth was significantly higher for the migrants, underscoring the policy’s direct effect. However, while the directional trends in triple-difference estimates supported the hypothesis, statistical significance was sometimes lacking, suggesting that while the impact was real, broader validation through additional studies might be needed.

Lessons for the Future of Migration Policy

The findings of this study carry profound implications for migration and labor policy. The evidence suggests that the formal recognition of foreign credentials can meaningfully improve the labor market outcomes of skilled migrants, especially in sectors like healthcare, where the demand is high and credential barriers are strict. Moreover, the wage premiums observed point to a broader theme: recognition isn’t just symbolic; it has material, measurable benefits for integration. The researchers caution, however, that the results may not be generalizable across all professions or contexts. Sectors like education, which suffered from extended school closures during the pandemic, may have experienced labor demand shocks that confounded earnings outcomes. Similarly, law and finance remained more regulated and less open to rapid credentialing, placing structural limits on migrant entry and wage growth. Nevertheless, the study offers a model for how targeted policy interventions can unlock immigrant potential in host countries. It shows that when governments choose to value foreign experience and education, especially during times of crisis, they can not only fill urgent labor gaps but also foster more inclusive and equitable economies.