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Entry Class and the Earnings Attainment of Immigrants to Canada, 1980­1995

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Author Info
Richard A. Wanner
Abstract

An important set of theoretical and policy questions revolves around the comparative success in the Canadian labour market of immigrants entering the country as independent immigrants under the point system, through family reunification programs, or as refugees. I estimate models predicting log earnings from the entry class composition of each entry cohort by country of birth and its interaction with years since arrival controlling for other characteristics known to be related to earnings attainment using data from Citizenship and Immigration Canada's Landing Information Data System (LIDS) for 1980 to 1995 merged with the 1996 Census of Canada Public Use Microdata File. While the point system used to screen immigrants to Canada for skills and labour market suitability does indeed select immigrants who have higher earnings upon arrival than those who are not screened, over time the earnings of the two groups converge after human capital differences are taken into account. In a comparison of the earnings of the refugee class to those of all other classes, the results here also indicate convergence net of human capital differences. These patterns are observed for both men and women.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v29n1/CPPv29n1p053.pdf
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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 29 (2003)
Issue (Month): 1 (March)
Pages: 53-71
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Handle: RePEc:cpp:issued:v:29:y:2003:i:1:p:53-71

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  1. George J. Borjas, 1991. "Immigration Policy, National Origin, and Immigrant Skills: A Comparison of Canada and the United States," NBER Working Papers 3691, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  3. Alan G. Green & David A. Green, 1995. "Canadian Immigration Policy: The Effectiveness of the Point System and Other Instruments," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 1006-41, November.
  4. Wright, Robert E & Maxim, Paul S, 1993. "Immigration Policy and Immigrant Quality: Empirical Evidence from Canada," Journal of Population Economics, Springer, vol. 6(4), pages 337-52, November.
  5. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of immigrant men in Canada: Job tenure, cohort, and macroeconomic conditions," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 51(3), pages 465-482, April.
  6. David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
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