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Macroeconomic Impacts of Canadian Immigration: Results from a Macro-Model

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  • Dungan, Peter

    ()
    (University of Toronto)

  • Fang, Tony

    ()
    (Monash University)

  • Gunderson, Morley

    ()
    (University of Toronto)

Abstract

We use a macro-econometric forecasting model to simulate the impact on the Canadian economy of a hypothetical increase in immigration. Our simulations generally yield positive impacts on such factors as real GDP and GDP per capita, aggregate demand, investment, productivity, and government expenditures, taxes and especially net government balances, with essentially no impact on unemployment. This is generally buttressed by conclusions reached in the existing literature. Our analysis suggests that concern should be with respect to immigrants themselves as they are having an increasingly difficult time assimilating into the Canadian labour market, and new immigrants are increasingly falling into poverty.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6743.

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Length: 36 pages
Date of creation: Jul 2012
Date of revision:
Publication status: published in: British Journal of Industrial Relations , 2013, 51 (1), 174-195
Handle: RePEc:iza:izadps:dp6743

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Keywords: FOCUS Model; immigration; macroeconomic impact; Canada;

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Cited by:
  1. Christopher Worswick, . "Improving Immigrant Selection: Further Changes Are Required Before Increasing Inflows," e-briefs 157, C.D. Howe Institute.

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