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Earnings Inequality and Earnings Instability of Immigrants in Canada

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  • Ostrovsky, Yuri

Abstract

The deterioration of immigrants' entry earnings in Canada in the past three decades has been well documented. This study provides further insights into the changing fortunes of immigrants by focusing on their earnings inequality and earnings instability. The analysis is based on a flexible econometric model that decomposes earnings inequality into current and long-term components. In addition to constructing earnings inequality and earnings instability profiles for different arrival cohorts, we also examine the underlying causes of earnings inequality, including the impact of foreign education, birthplace and the ability to speak English or French.

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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2008309&ObjType=46&lang=en&limit=0
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File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M2008309&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 2008309e.

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Date of creation: 09 Apr 2008
Date of revision:
Handle: RePEc:stc:stcp3e:2008309e

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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; Labour; Low income and inequality; Wages; salaries and other earnings;

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References

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  3. Todd E. Clark, 1995. "Small sample properties of estimators of non-linear models of covariance structure," Research Working Paper, Federal Reserve Bank of Kansas City 95-01, Federal Reserve Bank of Kansas City.
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  5. Rachel M. Friedberg, 1996. "You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital," NBER Working Papers 5837, National Bureau of Economic Research, Inc.
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  8. John M. Abowd & David Card, 1986. "On the Covariance Structure of Earnings and Hours Changes," NBER Working Papers 1832, National Bureau of Economic Research, Inc.
  9. Guillermina Jasso & Mark R. Rosenzweig & James P. Smith, 2000. "The Changing Skill of New Immigrants to the United States: Recent Trends and Their Determinants," NBER Chapters, National Bureau of Economic Research, Inc, in: Issues in the Economics of Immigration, pages 185-226 National Bureau of Economic Research, Inc.
  10. Ana Ferrer & David A. Green & W. Craig Riddell, 2006. "The Effect of Literacy on Immigrant Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  11. Baker, Michael, 1997. "Growth-Rate Heterogeneity and the Covariance Structure of Life-Cycle Earnings," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(2), pages 338-75, April.
  12. Christian Dustmann & Arthur Van Soest, 2002. "Language and the earnings of immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 473-492, April.
  13. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 38(2), pages 641-672, May.
  14. Charles M. Beach & Ross Finnie & David Gray, 2003. "Earnings Variability and Earnings Instability of Women and Men in Canada: How Do the 1990s Compare to the 1980s?," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 29(s1), pages 41-64, January.
  15. Joseph G. Altonji & Lewis M. Segal, 1994. "Small sample bias in GMM estimation of covariance structures," Working Paper Series, Macroeconomic Issues, Federal Reserve Bank of Chicago 94-8, Federal Reserve Bank of Chicago.
  16. Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 32(4), pages 930-955, August.
  17. Peter Gottschalk & Robert Moffitt, 1994. "The Growth of Earnings Instability in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 217-272.
  18. Robert A. Moffitt & Peter Gottschalk, 2002. "Trends in the Transitory Variance of Earnings in the United States," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C68-C73, March.
  19. Julian R. Betts & Magnus Lofstrom, 2000. "The Educational Attainment of Immigrants: Trends and Implications," NBER Chapters, National Bureau of Economic Research, Inc, in: Issues in the Economics of Immigration, pages 51-116 National Bureau of Economic Research, Inc.
  20. David A. Green & Christopher Worswick, 2004. "Immigrant earnings profiles in the presence of human capital investment: measuring cohort and macro effects," IFS Working Papers, Institute for Fiscal Studies W04/13, Institute for Fiscal Studies.
  21. Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series, Statistics Canada, Analytical Studies Branch 2003215e, Statistics Canada, Analytical Studies Branch.
  22. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(5), pages 897-921, October.
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Cited by:
  1. Abbott, Michael G. & Beach, Charles M., 2011. "Immigrant Earnings Differences Across Admission Categories and Landing Cohorts in Canada," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2011-20, Vancouver School of Economics, revised 21 Aug 2011.
  2. Abbott, Michael G. & Beach, Charles M., 2013. "Earnings Mobility of Canadian Immigrants: A Transition Matrix Approach," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2013-47, Vancouver School of Economics, revised 27 Oct 2013.

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