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Immigration Unemployment Relationship: The Evidence From Canada




This paper examines the relationship between unemployment and immigration in Canada. The bi-directional causality test finds no evidence of a significant effect of Canadian immigration on unemployment. Cointegration tests indicate that there is no observed increase in aggregate unemployment due to immigration in the long run. The results from the causality test based on the vector error correction model confirm that, in the short run, past unemployment does cause (less) immigration but not vice versa. There is also a long-run positive relationship among per-capita GDP, immigration rate and real wages. The results indicate that, in the short-run, more immigration is possibly associated with attractive Canadian immigration policies, and in the long-run, as the labour market adjusts, Canadian-born workers are likely to benefit from increased migration. Copyright 2007 The Author Journal compilation 2007 Blackwell Publishing Ltd/University of Adelaide and Flinders University .

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  • Asadul Islam, 2007. "Immigration Unemployment Relationship: The Evidence From Canada ," Australian Economic Papers, Wiley Blackwell, vol. 46(1), pages 52-66, March.
  • Handle: RePEc:bla:ausecp:v:46:y:2007:i:1:p:52-66

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    Cited by:

    1. Timothy Smeeding & Jonathan Gershuny & Karen Robson & Coady Wing, 2009. "Income Poverty and Income Support for Minority and Immigrant Children in Rich Countries," LIS Working papers 527, LIS Cross-National Data Center in Luxembourg.
    2. Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries," LABOUR, CEIS, vol. 27(4), pages 399-420, December.
    3. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    4. Islam, Faridul & Khan, Saleheen & Rashid, Salim, 2012. "Immigration and Economic Growth: Further Evidence from US Data," Review of Applied Economics, Review of Applied Economics, vol. 8(1).
    5. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "Unemployed, Now What? The Effect of Immigration on Unemployment Transitions of Native-born Workers in the United States," Economics Working Paper Archive wp_870, Levy Economics Institute.
    6. repec:hal:wpaper:halshs-01135389 is not listed on IDEAS
    7. E. J. Wilson & K. Jayanthakumaran & R. Verma, 2012. "Demographics, Labor Mobility, and Productivity," Development Economics Working Papers 23348, East Asian Bureau of Economic Research.
    8. Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2013. "Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries," Economic Modelling, Elsevier, vol. 33(C), pages 261-269.
    9. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    10. Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2013. "Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries," Economic Modelling, Elsevier, vol. 33(C), pages 261-269.
    11. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Fernando Rios-Avila & Gustavo Canavire-Bacarreza, 2016. "The Impact of Immigration on the Native-born Unemployed," Economics Policy Note Archive 16-3, Levy Economics Institute.
    13. D'Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2017. "International Migration and Regional Housing Markets: Evidence from France," IZA Discussion Papers 10516, Institute for the Study of Labor (IZA).
    14. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    15. Aurore Gary & Audrey-Rose Menard, 2015. "Aid, Trade and Migration : How are OECD countries policies connected in times of crisis?," Working Papers of BETA 2015-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    16. Michael Landesmann & Sandra M. Leitner & Isilda Mara, 2015. "Intra-EU Mobility and Push and Pull Factors in EU Labour Markets: Estimating a Panel VAR Model," wiiw Working Papers 120, The Vienna Institute for International Economic Studies, wiiw.
    17. Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2011. "Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries," IZA Discussion Papers 5853, Institute for the Study of Labor (IZA).
    18. Herrera Gómez, Marcos, 2010. "Causalidad Espacial. Enfoque No Paramétrico
      [Spatial Causality. Non-Parametric Approach]
      ," MPRA Paper 61326, University Library of Munich, Germany.
    19. Latif, Ehsan, 2015. "The relationship between immigration and unemployment: Panel data evidence from Canada," Economic Modelling, Elsevier, vol. 50(C), pages 162-167.

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