In advanced knowledge economies, access to quality employment depends crucially on skills. The social investment perspective has recognised this and promotes skill development as a means of dealing with social problems. However, possessing skills may not be enough. Individuals who have been educated abroad or have acquired skills through experience face the risk of labour market marginalisation. To address this issue, most European countries have developed alternative skill certification systems (recognition of experience or foreign qualifications). Using queuing and signalling theory, we study employers' perception of alternative skill certification. Empirically, we focus on childcare in Switzerland. First, we use a vignette experiment to examine how employers evaluate alternative credentials. Second, based on qualitative interviews, we explore what drives employers' assessment. We find that while possessing alternative credentials significantly increases such candidates' hiring prospects, they are not considered equal to those holding standard degrees because employers do not believe they have acquired certain specific skills. © 2025 The Author(s). International Journal of Social Welfare published by Akademikerförbundet SSR (ASSR) and John Wiley & Sons Ltd.
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