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Effects of Business Cycles on the Labour Market Assimilation of Immigrants

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  • Aydemir, Abdurrahman
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    Abstract

    This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies both the effects of macroeconomic conditions at the time of entry into the labour market and at the time of the survey was taken, while allowing for cohort effects. Also, for the first time in the literature, the impacts on labour force participation along with employment outcomes are explored. The study uses 19 annual cross-sections of the Survey of Consumer Finances, covering the period from 1979 to 1997. The results suggest that the deterioration in the assimilation of recent immigrants is partly due to the adverse economic conditions they face in the year they enter the labour market and the subsequent years following. Macroeconomic conditions at the time of labour market entry have adverse impacts on both labour force participation (LFP) and employment. With the inclusion of controls for macroeconomic conditions, the significance and magnitude of the assimilation-measuring co-efficient increases. Therefore, not only are the estimated cohort effects sensitive to the inclusion of controls for business cycles, but so too are the assimilation profiles.

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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2003203&ObjType=46&lang=en&limit=0
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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 2003203e.

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    Date of creation: 31 Jul 2003
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    Handle: RePEc:stc:stcp3e:2003203e

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    Keywords: Employment and unemployment; Ethnic diversity and immigration; Immigrants and non-permanent residents; Integration of newcomers; Labour; Labour market and income; Wages; salaries and other earnings;

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    1. Bodman, P.M. & Crosby, M., 1998. "Phases of the Canadian Business Cycle," Department of Economics - Working Papers Series, The University of Melbourne 640, The University of Melbourne.
    2. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of immigrant men in Canada: Job tenure, cohort, and macroeconomic conditions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    3. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December.
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    Cited by:
    1. 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.
    2. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography, EconWPA 0409006, EconWPA.
    3. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
    4. Aydemir, Abdurrahman & Skuterud, Mikal, 2004. "Explication de la deterioration des gains au niveau d'entree des cohortes d'immigrants au Canada, 1966-2000," Direction des etudes analytiques : documents de recherche 2004225f, Statistics Canada, Direction des etudes analytiques.

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