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Effects of Business Cycles on Labour Market Assimilation of Immigrants

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Author Info

  • Abdurrahman Aydemir

    (Statistics Canada)

Abstract

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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File URL: http://128.118.178.162/eps/lab/papers/0309/0309010.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0309010.

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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
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Web page: http://128.118.178.162

Related research

Keywords: Immigration; business cycle; cohort effects; economic assimilation; labour force participation; employment;

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References

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  1. Bodman, P.M. & Crosby, M., 1998. "Phases of the Canadian Business Cycle," Department of Economics - Working Papers Series 640, The University of Melbourne.
  2. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December.
  3. 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.
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Citations

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Cited by:
  1. Aydemir, Abdurrahman Skuterud, Mikal, 2004. "Explaining the Deteriorating Entry Earnings of Canada's Immigrant Cohorts: 1966-2000," Analytical Studies Branch Research Paper Series 2004225e, Statistics Canada, Analytical Studies Branch.
  2. Picot, Garnett Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
  3. Aydemir, Abdurrahman, 2012. "Skill Based Immigrant Selection and Labor Market Outcomes by Visa Category," IZA Discussion Papers 6433, Institute for the Study of Labor (IZA).
  4. Picot, Garnett & Sweetman, Arthur, 2011. "Canadian Immigration Policy and Immigrant Economic Outcomes: Why the Differences in Outcomes between Sweden and Canada?," IZA Policy Papers 25, Institute for the Study of Labor (IZA).
  5. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, EconWPA.

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