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Effects of Selection Criteria and Economic Opportunities on the Characteristics of Immigrants

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  • Aydemir, Abdurrahman

Abstract

International migration is a joint outcome of the individual's desire to migrate and the host country's selection process. First, the potential migrants apply to a host country, then the host country chooses migrants from the applicant pool. The theoretical focus of the earlier literature was centred on the desire to migrate, while the empirical literature focused on the actual migrants, while migration is the product of these two factors. The objective of this paper is to identify the components of this two-step, decision-making process Parameters in the migration model relate directly to policy instruments such as the points awarded for various characteristics. Given the parameter estimates of the model and the general analysis of immigration policy, a study of the factors determining the individual's decision to apply can be done in a way that has not been possible up until now. Using samples of migrants and non-migrants, the model is estimated for migration from two different source countries, the United States and the United Kingdom, to Canada. For migrants, a newly available longitudinal data set, the Longitudinal Immigration Database (IMDB), has been used. The richness of this database, which surveys immigrants to Canada over a long period and contains information on both their application and subsequent earnings, permits the investigation of a large range of questions that could not be fruitfully addressed before. Estimation of the two-step framework provides important insights on the effects of factors, such as education and income, that help establish this selection process.

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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2002182e.

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Date of creation: 23 Oct 2002
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Handle: RePEc:stc:stcp3e:2002182e

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Related research

Keywords: Education; training and learning; Ethnic diversity and immigration; Educational attainment; Immigrants and non-permanent residents; Integration of newcomers;

References

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  1. James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
  2. Newey, Whitney K & Powell, James L & Walker, James R, 1990. "Semiparametric Estimation of Selection Models: Some Empirical Results," American Economic Review, American Economic Association, vol. 80(2), pages 324-28, May.
  3. Alan G. Green & David A. Green, 1995. "Canadian Immigration Policy: The Effectiveness of the Point System and Other Instruments," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 1006-41, November.
  4. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November.
  5. Greenwood, Michael J & McDowell, John M, 1991. "Differential Economic Opportunity, Transferability of Skills, and Immigration to the United States and Canada," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 612-23, November.
  6. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September.
  7. Davies, J.B. & Wooton, I., 1991. "Income Inequality and International Migration," University of Western Ontario, The Centre for the Study of International Economic Relations Working Papers 9111, University of Western Ontario, The Centre for the Study of International Economic Relations.
  8. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-99, July.
  9. Wilson, John Douglas, 1992. "Optimal Income Taxation and International Personal Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 191-96, May.
  10. Heywood, John S. & Mohanty, Madhu S., 1990. "Race and employment in the federal sector," Economics Letters, Elsevier, vol. 33(2), pages 179-183, June.
  11. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  12. Zweimuller, Josef, 1992. "Survey non-response and biases in wage regressions," Economics Letters, Elsevier, vol. 39(1), pages 105-109, May.
  13. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
  14. John M. Abowd & Henry S. Farber, 1982. "Job queues and the union status of workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
  15. Cobb-Clark, Deborah A, 1993. "Immigrant Selectivity and Wages: The Evidence for Women," American Economic Review, American Economic Association, vol. 83(4), pages 986-93, September.
  16. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  17. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
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Citations

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Cited by:
  1. Aydemir, Abdurrahman & Chen, Wen-Hao & Corak, Miles, 2006. "Intergenerational Earnings Mobility among the Children of Canadian Immigrants," IZA Discussion Papers 2085, Institute for the Study of Labor (IZA).
  2. McHale, John & Rogers, Keith, 2009. "Selecting Economic Immigrants: An Actuarial Approach," CLSSRN working papers clsrn_admin-2009-64, Vancouver School of Economics, revised 28 Nov 2009.

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