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The Impact of Immigration on the Labour Market Outcomes of Native-born Canadians

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Author Info
Jiong Tu

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Abstract

Although immigration has become a major growth factor for Canadian labour force, there is little economic research on the effect of immigration on native-born Canadians' labour market performance. This paper examines the relationship between changes in the share of immigrants by sub-labour markets (categorized by skill types and geographic areas) and changes in native wage growth by a two-stage regression analysis, using 1991, 1996 and 2001 Canadian Census microdata. After accounting for biases due to native mobility, endogenous location of immigrants and labour demand shifts, the estimated effects of immigration are consistently insignificant or significantly positive. The results are robust over various specifications of sub-labour markets at city, provincial and national levels, suggesting no evidence for a negative impact on native wage growth rate from the large immigrant influx during the 1990s.

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File URL: http://socserv2.socsci.mcmaster.ca/~sedap/p/sedap216.pdf
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Publisher Info
Paper provided by McMaster University in its series Social and Economic Dimensions of an Aging Population Research Papers with number 216.

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Length: 43 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:mcm:sedapp:216

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Related research
Keywords: immigration; labour supply; labour mobility; wage;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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    Other versions:
  3. Sweetman, Arthur, 2004. "Immigrant Source Country Educational Quality and Canadian Labour Market Outcomes," Analytical Studies Branch Research Paper Series 2004234e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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    Other versions:
  6. Addison, Thomas & Worswick, Christopher, 2002. "The Impact of Immigration on the Earnings of Natives: Evidence from Australian Micro Data," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 68-78, March. [Downloadable!] (restricted)
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  11. Jordan Shan, 1999. "Immigration and Unemployment: new evidence from Australia and New Zealand," International Review of Applied Economics, Taylor and Francis Journals, vol. 13(2), pages 253-260, May. [Downloadable!] (restricted)
  12. Alan G. Green & David A. Green, 1999. "The Economic Goals of Canada's Immigration Policy, Past and Present," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 425-451, December. [Downloadable!] (restricted)
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  13. LaLonde, Robert J & Topel, Robert H, 1991. "Immigrants in the American Labor Market: Quality, Assimilation, and Distributional Effects," American Economic Review, American Economic Association, vol. 81(2), pages 297-302, May.
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    Other versions:
  15. David Card, 1990. "The impact of the Mariel boatlift on the Miami labor market," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(2), pages 245-257, January.
    Other versions:
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