This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies the separate effects of macro conditions at the time of entry to the labour market and at the time of the survey, while allowing for cohort effects. Also, for the first time in literature the impacts on labour force participation along with employment outcomes are explored. The study uses 19 annual cross-sections of the Survey of Consumer Finances covering the period 1979 to 1997. The results suggest that the deterioration in the assimilation of recent immigrants is partly due to the adverse economic conditions they face in the year they enter the labour market and subsequently. Macroeconomic conditions at the time of labour market entry have adverse impacts on both labour force participation and employment. With the inclusion of controls for macro conditions, the significance and magnitude of the coefficient measuring assimilation increases. Therefore, not only the estimated cohort effects bur also the assimilation profiles are sensitive to the inclusion of controls for business cycles.
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Paper provided by EconWPA in its series Labor and Demography with number
0309010.
Length: 42 pages Date of creation: 24 Sep 2003 Date of revision: Handle: RePEc:wpa:wuwpla:0309010
Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP; pages: 42; figures: included. 42 pages pdf Contact details of provider: Web page: http://129.3.20.41
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Find related papers by JEL classification: J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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