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Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades

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Author Info

  • Morissette, Rene
  • Frenette, Marc

Abstract

Using census data covering the 1980 to 2000 period, we examine what outcomes would be necessary for cohorts of recent immigrants to achieve earnings parity with Canadian-born workers. Our results show that today's recent immigrants would have to experience a drastic rise of their relative age-earnings profile in the near future for their earnings to converge with their Canadian-born counterparts. The reason is simple: the greater relative earnings growth experienced by cohorts of recent immigrants has only partially offset the drastic deterioration in their relative earnings at entry.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2003215&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 2003215e.

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Date of creation: 08 Oct 2003
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Handle: RePEc:stc:stcp3e:2003215e

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Postal: Tunney's Pasture, Ottawa, Ontario, K1A 0T6
Web page: http://www.statcan.gc.ca
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Related research

Keywords: Ethnic diversity and immigration; Immigrants and non-permanent residents; Income; pensions; spending and wealth; Integration of newcomers; Labour; Labour market and income; Low income and inequality; Visible minorities; Wages; salaries and other earnings;

References

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  1. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  2. Hou, Feng & Picot, Garnett, 2003. "The Rise in Low-income Rates Among Immigrants in Canada," Analytical Studies Branch Research Paper Series 2003198e, Statistics Canada, Analytical Studies Branch.
  3. Bloom, D. & Grenier, G. & Gunderson, M., 1993. "The Changing Labour Market Position of Canadian Immigrants," Working Papers 9305e, University of Ottawa, Department of Economics.
  4. 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.
  5. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
  6. Eric R. Eide & Mark H. Showalter, 1999. "Factors Affecting the Transmission of Earnings across Generations: A Quantile Regression Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 253-267.
  7. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  8. Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 930-955, August.
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