Explaining the Labour Market Outcomes of First, Second and Third Generation Immigrants in Canada
AbstractThis paper examines the effectiveness of Canadian immigration policy by analyzing the differences in the returns to education between first, second and third generation immigrant men. Regression results indicate that the second generation with high school education and lower do not earn significantly less than the equally educated third generation. However, the second generation with at least postsecondary education experience a wage deficit to the third generation. I explain the well-educated second generation’s difficulty in translating their intellectual ability into productivity by their ethnic and linguistic distance from the Canadian mainstream, and by a negative city-specific effect. Regression results using sub-samples categorized by subsequently interacting educational attainments with ethnicity, mother tongue and city of residence support these explanations. I then suggest that assimilation policies targeting the well-educated first and second generation immigrants be designed to promote the acceptance of their human capital by the Canadian labour market.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5128.
Length: 36 pages
Date of creation: Aug 2010
Date of revision:
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Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-28 (All new papers)
- NEP-EDU-2010-08-28 (Education)
- NEP-HRM-2010-08-28 (Human Capital & Human Resource Management)
- NEP-LAB-2010-08-28 (Labour Economics)
- NEP-MIG-2010-08-28 (Economics of Human Migration)
You can help add them by filling out this form.
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