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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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Cited by:
  1. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June.
  2. Cohen-Goldner, Sarit & Gotlibovski, Chemi & Kahana, Nava, 2009. "A Reevaluation of the Role of Family in Immigrants' Labor Market Activity: Evidence from a Comparison of Single and Married Immigrants," IZA Discussion Papers 4185, Institute for the Study of Labor (IZA).
  3. Rashid, Saman, 2004. "Married immigrant women and employment.The role of family investments," UmeÃ¥ Economic Studies 623, Umeå University, Department of Economics.
  4. 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.
  5. 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.
  6. McDonald, James Ted & Worswick, Christopher, 2013. "Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006," CLSSRN working papers clsrn_admin-2013-23, Vancouver School of Economics, revised 29 Apr 2013.
  7. Cobb-Clark, Deborah A. & Crossley, Thomas F., 2001. "Gender, Comparative Advantage and Labor Market Activity in Immigrant Families," IZA Discussion Papers 293, Institute for the Study of Labor (IZA).
  8. 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.
  9. Cohen-Goldner, Sarit & Gotlibovski, Chemi & Kahana, Nava, 2006. "The Role of Marriage in Immigrants’ Human Capital Investment under Liquidity Constraints," IZA Discussion Papers 2308, Institute for the Study of Labor (IZA).
  10. Ribar, David C., 2012. "Immigrants' Time Use: A Survey of Methods and Evidence," IZA Discussion Papers 6931, Institute for the Study of Labor (IZA).
  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.
  12. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," UmeÃ¥ Economic Studies 625, Umeå University, Department of Economics.
  13. Rochelle Belkar & Lynne Cockerell & Rebecca Edwards, 2007. "Labour Force Participation and Household Debt," RBA Research Discussion Papers rdp2007-05, Reserve Bank of Australia.
  14. Sarantis Lolos & Evangelia Papapetrou, 2011. "Housing credit and female labour supply: assessing the evidence from Greece," Working Papers 141, Bank of Greece.

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