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Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006

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  • McDonald, James Ted
  • Worswick, Christopher

Abstract

The incomes, hours of work and co-residency behavior of older immigrants in Canada are analyzed using data from the confidential master files of the Canadian Census for the years 1991, 1996, 2001 and 2006. Older immigrants in Canada have lower incomes than the Canadian-born of the same age range and this difference is concentrated in the immigrants who arrived older than age 50. However, there is also evidence that the effects of the lower incomes on the welfare of these immigrants are mitigated to a certain extent through co-residency, presumably with their younger relatives already resident in Canada. Immigrants reside with, on average, more family members than do the Canadian born. A clear pattern is present of immigrant groups with relatively low average incomes being the ones living in larger economic families. Immigrants who arrive at younger ages (25-49) are more likely to be employed and if they are employed, they tend to work longer hours than their Canadian born counterparts. For immigrants who arrived after age 50, their employment decisions do not differ greatly from their Canadian born counterparts; however, if they work, their hours of work tend to be higher. Immigrants have relatively less income from private pensions compared with the Canadian born. Immigrants from non-traditional source countries have low levels of CPP/QPP income relative to immigrants from traditional source countries or the Canadian born. In terms of OAS/GIS income, immigrant men who arrived at age 60 or older have in the order of 50% lower incidence of receiving pension income than do immigrants who arrived at younger ages. In contrast, for immigrant men who arrived age 25-49, we do not see large differences in their incidence or level of income received from OAS/GIS relative to otherwise similar Canadian born men.

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Bibliographic Info

Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2013-23.

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Length: 71 pages
Date of creation: 29 Apr 2013
Date of revision: 29 Apr 2013
Handle: RePEc:ubc:clssrn:clsrn_admin-2013-23

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Web page: http://www.clsrn.econ.ubc.ca/

Related research

Keywords: Retirement; pensions; income; immigrant; labour supply; housing; gender;

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References

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  1. Kevin Milligan, 2007. "The Evolution of Elderly Poverty in Canada," Social and Economic Dimensions of an Aging Population Research Papers 170, McMaster University.
  2. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  3. David A. Green & James Townsend, 2009. "Understanding the wage patterns of Canadian less skilled workers: the role of implicit contracts," IFS Working Papers W09/22, Institute for Fiscal Studies.
  4. Charles Beach & Ross Finnie, 2004. "A longitudinal analysis of earnings change in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 219-240, February.
  5. 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.
  6. 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.
  7. Christopher Worswick, 1999. "Credit Constraints and the Labour Supply of Immigrant Families in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(1), pages 152-170, February.
  8. Patrik Marier & Suzanne Skinner, 2008. "The Impact of Gender and Immigration on Pension Outcomes in Canada," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 59-78, November.
  9. Worswick, C., 1996. "Immigrant Families in Canadian labour Market," Department of Economics - Working Papers Series 504, The University of Melbourne.
  10. Paul Beaudry & David Green, 1997. "Cohort Patterns in Canadian Earnings: Assessing the Role of Skill Premia in Inequality Trends," NBER Working Papers 6132, National Bureau of Economic Research, Inc.
  11. Baker, Michael & Benjamin, Dwayne & Fan, Elliot, 2009. "Public Policy and the Economic Wellbeing of Elderly Immigrants," CLSSRN working papers clsrn_admin-2009-69, Vancouver School of Economics, revised 28 Dec 2009.
  12. Michael R. Veall, 2007. "Which Canadian Seniors Are Below the Low-Income Measure?," Quantitative Studies in Economics and Population Research Reports 414, McMaster University.
  13. Christopher Worswick, 1996. "Immigrant Families in the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 22(4), pages 378-396, December.
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