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Why is Immigrants’ Access to Employment lower in Montreal than in Toronto?

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  • Gilles Grenier

    ()
    (Department of Economics, University of Ottawa, Ottawa, ON)

  • Serge Nadeau

    ()
    (Department of Economics, University of Ottawa, Ottawa, ON)

Abstract

This paper explores reasons why the employment rate gap between immigrants and Canadian born individuals is larger in Montreal than in Toronto. A major reason is language: relative to Canadian born individuals, immigrants in Montreal are significantly less likely to know French than their Toronto counterparts to know English and their knowledge of French is less rewarded by employers than their Toronto counterparts’ knowledge of English. We also find that holding other factors constant, the performance of immigrants according to their countries of origin is remarkably similar in Montreal and Toronto: in both metropolitan areas, immigrants from Europe and India generally perform better than immigrants from China, Taiwan and Muslim countries. While we do not find any evidence that Quebec’s different immigration policy is causing the larger immigrant employment rate gap in Montreal, we cannot rule out the possibility that immigrants would be subject to more labour market discrimination in Montreal than in Toronto. However, this discrimination would be French language related as opposed to being ethnicity related. Results are generally similar for both male and female immigrants.

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Bibliographic Info

Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 1005E.

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Length: 33 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:ott:wpaper:1005e

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Keywords: Différences de taux d'emploi; immigrants versus personnes nées au Canada; Montréal et Toronto; politiques d'immigration;

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References

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  1. Brahim Boudarbat & Maude Boulet, 2010. "Immigration au Québec : Politiques et intégration au marché du travail," CIRANO Project Reports 2010rp-05, CIRANO.
  2. Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1066-1099, November.
  3. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
  4. David Albouy, 2008. "The Wage Gap between Francophones and Anglophones: A Canadian Perspective, 1970 to 2000," NBER Working Papers 14203, National Bureau of Economic Research, Inc.
  5. Krishna Pendakur & Ravi Pendakur, 1998. "The Colour of Money: Earnings Differentials Among Ethnic Groups in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(3), pages 518-548, August.
  6. Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
  7. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, EconWPA.
  8. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
  9. Antecol, Heather & Kuhn, Peter J. & Trejo, Stephen, 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA).
  10. Bloom, D. & Grenier, G. & Gunderson, M., 1993. "The Changing Labour Market Position of Canadian Immigrants," Working Papers 9305e, University of Ottawa, Department of Economics.
  11. Javier Gardeazabal & Arantza Ugidos, 2004. "More on Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1034-1036, November.
  12. Bernt Bratsberg & James F. Ragan & Zafar M. Nasir, 2002. "The Effect of Naturalization on Wage Growth: A Panel Study of Young Male Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 20(3), pages 568-597, July.
  13. Grenier, Gilles, 2001. "Immigration, langues et performance économique : le Québec et l’Ontario entre 1970 et 1995," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(3), pages 305-338, septembre.
  14. 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.
  15. Serge Nadeau, 2010. "Another Look at the Francophone Wage Gap in Canada: Public and Private Sectors, Quebec and Outside Quebec," Canadian Public Policy, University of Toronto Press, vol. 36(2), pages 159-179, June.
  16. 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.
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Cited by:
  1. Nong Zhu & Cecile Batisse, 2014. "L’immigration et le triangle « croissance, inégalités et pauvreté »: une analyse du revenu du ménage," CIRANO Working Papers 2014s-12, CIRANO.
  2. Brahim Boudarbat, 2011. "Labour market integration of immigrants in Quebec: a comparison with Ontario and British Columbia," CIRANO Project Reports 2011rp-09, CIRANO.
  3. Nong Zhu & Cecile Batisse, 2014. "L’inégalité, la pauvreté et l'intégration économique des immigrants au Canada depuis les années 1990," CIRANO Working Papers 2014s-10, CIRANO.

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