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You Can Take it with You! The Returns to Foreign Human Capital of Male Temporary Foreign Workers

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Author Info
Casey Warman () (Queen's University)

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Abstract

The research on immigration has found falling labor market outcomes of immigrants in many Western countries. In Canada, one of the major causes has been the decline in the returns to foreign work experience. Using the 1991, 1996 and 2001 Canadian Census Master Datafiles and applying both parametric and semiparametric techniques, it is found that unlike recently landed male immigrants, temporary foreign workers have no difficulty transferring their human capital to the Canadian labor market and in particular, they obtain very high returns to their foreign work experience. This is even true for temporary foreign workers from non-traditional backgrounds, a group that has had particular difficulty receiving returns to their foreign work experience for recent immigrant cohorts and now composes the majority of Canada’s immigration. It is likely that this premium can be partially attributed to the different selection process that temporary foreign workers and immigrants enter Canada under. While immigrants for the most part are selected by the government, the selection process for temporary foreign workers is driven by employers and employers may be better able to assess the transferability of the worker’s foreign human capital.

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File URL: http://www.econ.queensu.ca/working_papers/papers/qed_wp_1125.pdf
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File Function: First version 2007
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Publisher Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1125.

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Length: 36 pages
Date of creation: May 2007
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Handle: RePEc:qed:wpaper:1125

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Related research
Keywords: Immigrants Earnings Temporary Foreign Workers Partial linear models Nonparametric regressions Canada Nonpermanent residents semiparametric

Find related papers by JEL classification:
J7 - Labor and Demographic Economics - - Labor Discrimination
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; 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

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  1. Antecol, Heather & Cobb-Clark, Deborah A. & Trejo, Stephen, 2001. "Immigration Policy and the Skills of Immigrants to Australia, Canada, and the United States," IZA Discussion Papers 363, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
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    Other versions:
  6. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October. [Downloadable!] (restricted)
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    Other versions:
  8. Heather Antecol & Peter Kuhn & Stephen J. Trejo, 2006. "Assimilation via Prices or Quantities? Sources of Immigrant Earnings Growth in Australia, Canada and the United States," CReAM Discussion Paper Series 0603, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
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    Other versions:
  15. Bernt Bratsberg, 2002. "School Quality and Returns to Education of U.S. Immigrants," Economic Inquiry, Oxford University Press, vol. 40(2), pages 177-198, April.
  16. Horowitz, Joel L., 2000. "Semiparametric Models," Working Papers 00-01, University of Iowa, Department of Economics.
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