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Immigrant earnings growth: selection bias or real progress?

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  • Garnett Picot
  • Patrizio Piraino

Abstract

We use longitudinal tax data linked to immigrant landing records to study the effect of selective attrition on the estimated earnings assimilation of immigrants to Canada. Contrary to findings in the existing international literature, we show that the immigrantnative earnings gap closes at the same pace in longitudinal and crosssectional data. Lowearning immigrants are likely to leave the crosssectional samples over time, but the same is true for the native born. Our study suggests that immigrants to Canada have labour market participation dynamics similar to those of the native born.

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Bibliographic Info

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

Volume (Year): 46 (2013)
Issue (Month): 4 (November)
Pages: 1510-1536

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Handle: RePEc:cje:issued:v:46:y:2013:i:4:p:1510-1536

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References

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  1. Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, Elsevier, vol. 19(2), pages 241-259.
  2. Harriet Duleep & Mark Regets, 1997. "Measuring immigrant wage growth using matched CPS files," Demography, Springer, Springer, vol. 34(2), pages 239-249, May.
  3. Edin, Per-Anders & LaLonde, Robert J. & Ã…slund, Olof, 2000. "Emigration of Immigrants and Measures of Immigrant Assimilation: Evidence from Sweden," Working Paper Series, Uppsala University, Department of Economics 2000:13, Uppsala University, Department of Economics.
  4. Wei-Yin Hu, 2000. "Immigrant Earnings Assimilation: Estimates from Longitudinal Data," American Economic Review, American Economic Association, American Economic Association, vol. 90(2), pages 368-372, May.
  5. Skuterud, Mikal & Su, Mingcui, 2009. "Immigrant Wage Assimilation and the Return to Foreign and Host-Country Sources of Human Capital," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2009-38, Vancouver School of Economics, revised 26 Jun 2009.
  6. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, Springer, vol. 29(1), pages 129-147, January.
  7. Harriet Duleep & Daniel Dowhan, 2002. "Insights from longitudinal data on the earnings growth of U.S. foreign-born men," Demography, Springer, Springer, vol. 39(3), pages 485-506, August.
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Cited by:
  1. Christian Dustmann & Joseph-Simon Görlach, 2014. "Selective Outmigration and the Estimation of Immigrants’ Earnings Profiles," Norface Discussion Paper Series, Norface Research Programme on Migration, Department of Economics, University College London 2014002, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Michele Campolieti & Morley Gunderson & Olga Timofeeva & Evguenia Tsiroulnitchenko, 2013. "Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?," Journal of Labor Research, Springer, Springer, vol. 34(4), pages 455-475, December.
  3. Arthur Sweetman & Casey Warman, 2013. "Canada's Immigration Selection System and Labour Market Outcomes," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 141-160, May.

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