Immigrant Earnings Growth: Selection Bias or Real Progress?
AbstractWe use longitudinal tax data linked to immigrant landing records to estimate the earnings growth of immigrants from three entering cohorts since the early 1980s. Selective attrition by low-earning immigrants might result in lower earnings growth with years since migration in longitudinal data compared to repeated cross-sections. Existing studies on U.S. data have found exactly this result (Lubotsky 2007, JPE). We ask whether a similar bias is observed in the Canadian data and find that it is not. We show that while low-earnings immigrants are more likely to leave the cross-sectional samples over time, the same is true for the Canadian born population. We conclude that there is no evidence of selective labour force participation patterns among immigrants in Canada compared to the native born population.
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Bibliographic InfoPaper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2010-35.
Length: 32 pages
Date of creation: 28 Dec 2010
Date of revision: 28 Dec 2010
Contact details of provider:
Web page: http://www.clsrn.econ.ubc.ca/
Immigration; assimilation; longitudinal data; selection bias;
Other versions of this item:
- Garnett Picot & Patrizio Piraino, 2013. "Immigrant earnings growth: selection bias or real progress?," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1510-1536, November.
- Piraino, Patrizio & Picot, Garnett, 2012. "Immigrant Earnings Growth: Selection Bias or Real Progress?," Analytical Studies Branch Research Paper Series 2012340e, Statistics Canada, Analytical Studies Branch.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-LAB-2011-01-16 (Labour Economics)
- NEP-MIG-2011-01-16 (Economics of Human Migration)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Skuterud, Mikal & Su, Mingcui, 2009. "Immigrant Wage Assimilation and the Return to Foreign and Host-Country Sources of Human Capital," CLSSRN working papers clsrn_admin-2009-38, Vancouver School of Economics, revised 26 Jun 2009.
- Harriet Duleep & Mark Regets, 1997. "Measuring immigrant wage growth using matched CPS files," Demography, Springer, vol. 34(2), pages 239-249, May.
- David A. Green & Christopher Worswick, 2004.
"Immigrant earnings profiles in the presence of human capital investment: measuring cohort and macro effects,"
IFS Working Papers
W04/13, Institute for Fiscal Studies.
- Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, vol. 19(2), pages 241-259.
- Arthur Sweetman & Casey Warman, 2013. "Canada's Immigration Selection System and Labour Market Outcomes," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 141-160, May.
- Christian Dustmann & Joseph-Simon Görlach, 2014.
"Selective Outmigration and the Estimation of Immigrants’ Earnings Profiles,"
Norface Discussion Paper Series
2014002, Norface Research Programme on Migration, Department of Economics, University College London.
- Christian Dustmann & Joseph-Simon Görlach, 2014. "Selective Outmigration and the Estimation of Immigrants' Earnings Profiles," CESifo Working Paper Series 4617, CESifo Group Munich.
- Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
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