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Credit Constraints and the Labour Supply of Immigrant Families in Canada

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  • Christopher Worswick

Abstract

The hours of work decisions in immigrant and nonimmigrant families are compared using an intertemporal labor-supply model estimated over data from the 1981 and 1991 Census of Canada surveys. The family investment hypothesis is evaluated. The hypothesis states that the immigrant family is unable to borrow in the first years after migration and that the immigrant wife responds by working longer hours so as to support family consumption and her husband's labor market adjustment. The empirical evidence, in general, supports the hypothesis since credit constraints are found to significantly distort the labor-supply decisions of recently arrived immigrant families.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 32 (1999)
Issue (Month): 1 (February)
Pages: 152-170

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Handle: RePEc:cje:issued:v:32:y:1999:i:1:p:152-170

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Rashid, Saman, 2004. "Married immigrant women and employment.The role of family investments," UmeÃ¥ Economic Studies 623, Umeå University, Department of Economics.
  2. Deborah Cobb-Clark & Thomas Crossley, 2001. "Gender, Comparative Advantage and Labour Market Activity in Immigrant Families," CEPR Discussion Papers 433, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  3. Sarit Cohen-Goldner & Chemi Gotlibovski & Nava Kahana, 2009. "The role of marriage in immigrants’ human capital investment under liquidity constraints," Journal of Population Economics, Springer, vol. 22(4), pages 983-1003, October.
  4. Sarit Cohen-Goldner & Chemi Gotlibovski & Nava Kahana, 2009. "A Reevaluation Of the Role Of Family In Immigrants' Labor Market Activity;Evidence From a Comparison Of Single and Married Immigrants," Working Papers 2009-13, Department of Economics, Bar-Ilan University.
  5. Sarantis Lolos & Evangelia Papapetrou, 2011. "Housing credit and female labour supply: assessing the evidence from Greece," Working Papers 141, Bank of Greece.
  6. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June.
  7. Deborah Cobb-Clark & Marie D. Connolly & Christopher Worswick, 2000. "Does the Family Investment Hypothesis Explain Immigrant Labor Market Activity?," Econometric Society World Congress 2000 Contributed Papers 0828, Econometric Society.
  8. Ribar, David C., 2012. "Immigrants' Time Use: A Survey of Methods and Evidence," IZA Discussion Papers 6931, Institute for the Study of Labor (IZA).
  9. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," UmeÃ¥ Economic Studies 625, Umeå University, Department of Economics.
  10. Seik Kim & Nalina Varanasi, . "Labor Supply of Married Women in Credit-Constrained Households: Theory and Evidence," Working Papers UWEC-2010-01, University of Washington, Department of Economics.
  11. Hou, Feng Picot, Garnett, 2003. "The Rise in Low-income Rates Among Immigrants in Canada," Analytical Studies Branch Research Paper Series 2003198e, Statistics Canada, Analytical Studies Branch.

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