Cities and Growth: Moving to Toronto - Income Gains Associated with Large Metropolitan Labour Markets
AbstractThis paper examines the process by which migrants experience gains in earnings subsequent to migration and, in particular, the advantage that migrants obtain from moving to large, dynamic metropolitan labour markets, using Toronto as a benchmark. There are two potentially distinct patterns to gains in earnings associated with migration. The first is a step upwards in which workers realize immediate gains in earnings subsequent to migration. The second is accelerated gains in earnings subsequent to migration. Immediate gains are associated with obtaining a position in a more productive firm and/or a better match between worker skills and abilities and job tasks. Accelerated gains in earnings are associated processes that take time, such as learning or job switching as workers and firms seek out better matches. Evaluated here is the expectation that the economies of large metropolitan areas provide workers with an initial productive advantage stemming from a one-time improvement in worker productivity and/or a dynamic that accelerates gains in earnings over time through the potentially entwined processes of learning and matching. A variety of datasets and methodologies, including propensity score matching, are used to evaluate patterns of income gains associated with migration to Toronto.
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Bibliographic InfoPaper provided by Statistics Canada, Economic Analysis Division in its series The Canadian Economy in Transition with number 2012023e.
Date of creation: 03 May 2012
Date of revision:
Population and demography; Labour; Mobility and migration; Wages; salaries and other earnings;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-GEO-2012-05-22 (Economic Geography)
- NEP-LAB-2012-05-22 (Labour Economics)
- NEP-MIG-2012-05-22 (Economics of Human Migration)
- NEP-URE-2012-05-22 (Urban & Real Estate Economics)
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