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 UBC Department of Economics in its series CLSRN Working Papers with number clsrn_admin-2010-35.
Length: 32 pages
Date of creation: 28 Dec 2010
Date of revision: 28 Dec 2010
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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.
- Picot, Garnett Piraino, Patrizio, 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, and Vacancies - - - 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)
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- 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.
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