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Technological change, occupational tasks and declining immigrant outcomes: Implications for earnings and income inequality in Canada

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  • Casey Warman
  • Christopher Worswick

Abstract

The earnings and occupational task requirements of immigrants to Canada are analyzed. The growing education levels of immigrants in the 1990s have not led to a large improvement in earnings as one might expect if growing computerization and the resulting technological change was leading to a rising return to non‐routine cognitive skills and a greater wage return to university education. Controlling for education, we find a pronounced cross‐arrival cohort decline in earnings that coincided with cross‐cohort declines in cognitive occupational task requirements and cross‐cohort increases in manual occupational task requirements. The immigrant earnings outcomes had only a small effect on overall Canadian earnings inequality. Changement technique, tâches occupationnelles, et résultats déclinants pour les immigrants : Implications pour l’inégalité des gains et des revenus au Canada. Les auteurs analysent les gains et les prérequis des tâches occupationnelles des immigrants. Les niveaux d’éducation croissants des immigrants dans les années 1990 n’ont pas entraîné une grande amélioration dans les gains comme on aurait pu s’y attendre, si l’informatisation accrue et les changements techniques qui s’ensuivent ont entraîné un rendement croissant sur des habiletés cognitives non‐routinières et un rendement salarial plus grand sur l’éducation universitaire. Normalisant pour le niveau d’éducation, on découvre un déclin entre cohortes dans les gains qui coïncide avec un déclin dans ce que réclament les tâches en termes d’habiletés cognitives, et un accroissement de ce que réclament les occupations manuelles. L’effet de ces changements sur les gains des immigrants n’a eu qu’un faible impact sur l’inégalité des gains au Canada.

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  • Casey Warman & Christopher Worswick, 2015. "Technological change, occupational tasks and declining immigrant outcomes: Implications for earnings and income inequality in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 736-772, May.
  • Handle: RePEc:wly:canjec:v:48:y:2015:i:2:p:736-772
    DOI: 10.1111/caje.12142
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    2. David A. Green & Christopher Worswick, 2017. "Canadian economics research on immigration through the lens of theories of justice," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1262-1303, December.
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    4. Eva Moreno‐Galbis & Jeremy Tanguy & Ahmed Tritah & Catherine Laffineur, 2019. "Immigrants’ Wage Performance in a Routine Biased Technological Change Era: France 1994–2012," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 623-673, October.
    5. Susumu Imai & Derek Stacey & Casey Warman, 2019. "From engineer to taxi driver? Language proficiency and the occupational skills of immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 914-953, August.
    6. Alicia Adsera & Ana Ferrer, 2015. "Occupational Skills and Labour Market Progression of Canadian Immigrant Women," Working Papers 1504, University of Waterloo, Department of Economics, revised Dec 2015.
    7. Younjun Kim & Eric Thompson, 2021. "Routine-Biased Technological Change and Declining Employment Rate of Immigrants," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(3), pages 319-353, June.
    8. Sarah Burkinshaw & Yaz Terajima & Carolyn A. Wilkins, 2022. "Income Inequality in Canada," Discussion Papers 2022-16, Bank of Canada.
    9. Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(4), pages 1229-1292, November.
    10. Stephen R.G. Jones & Fabian Lange & W. Craig Riddell & Casey Warman, 2023. "The great Canadian recovery: The impact of COVID‐19 on Canada's labour market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 791-838, August.
    11. Benoit Dostie, 2018. "Polarisation du marché du travail, structure industrielle et croissance économique," CIRANO Project Reports 2018rp-02, CIRANO.
    12. Jiang, Shiyu, 2020. "Task Supply, Wage Earning, and Segmentation among Natives and Two Generations of Immigrants," MPRA Paper 103990, University Library of Munich, Germany.
    13. Aydede, Yigit & Dar, Atul A., 2022. "Native-born-immigrant wage gap revisited: The role of market imperfections in Canada," CLEF Working Paper Series 50, Canadian Labour Economics Forum (CLEF), University of Waterloo.
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    16. Adsera, Alicia & Ferrer, Ana, 2015. "The Effect of Linguistic Proximity on the Occupational Assimilation of Immigrant Men in Canada," IZA Discussion Papers 9499, Institute of Labor Economics (IZA).
    17. Adserà, Alícia & Ferrer, Ana, 2016. "Occupational skills and labour market progression of married immigrant women in Canada," Labour Economics, Elsevier, vol. 39(C), pages 88-98.
    18. Doyle, Matthew & Skuterud, Mikal & Worswick, Christopher, 2023. "The economics of Canadian immigration levels," CLEF Working Paper Series 58, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    19. Yigit Aydede & Atul Dar, 2016. "The cost of immigrants’ occupational mismatch and the effectiveness of postarrival policies in Canada," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-23, December.
    20. Nicholas Lawson, 2024. "Discrimination and the Fiscal Benefits of Immigration," Working Papers 24-01, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    21. Alícia Adserà & Ana Ferrer, 2021. "Linguistic Proximity and the Labour Market Performance of Immigrant Men in Canada," LABOUR, CEIS, vol. 35(1), pages 1-23, March.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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