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Credit Constraints and the Labour Supply of Immigrant Families in Canada

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  • Christopher Worswick

Abstract

The hours of work decisions in immigrant and nonimmigrant families are compared using an intertemporal labor-supply model estimated over data from the 1981 and 1991 Census of Canada surveys. The family investment hypothesis is evaluated. The hypothesis states that the immigrant family is unable to borrow in the first years after migration and that the immigrant wife responds by working longer hours so as to support family consumption and her husband's labor market adjustment. The empirical evidence, in general, supports the hypothesis since credit constraints are found to significantly distort the labor-supply decisions of recently arrived immigrant families.

Suggested Citation

  • 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.
  • Handle: RePEc:cje:issued:v:32:y:1999:i:1:p:152-170
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    Citations

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    Cited by:

    1. Ana Ferrer, 2015. "Are married immigrant women secondary workers?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 119-119, January.
    2. Rashid, Saman, 2004. "Married immigrant women and employment.The role of family investments," Umeå Economic Studies 623, Umeå University, Department of Economics.
    3. Deborah Cobb-Clark & Thomas F Crossley, "undated". "Gender, Comparative Advantage and Labor Market Activity in Immigrant Families," Canadian International Labour Network Working Papers 46, McMaster University.
    4. Sarit Cohen-Goldner & Chemi Gotlibovski & Nava Kahana, 2009. "The role of marriage in immigrants’ human capital investment under liquidity constraints," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 983-1003, October.
    5. Cohen Goldner, Sarit & Gotlibovski, Chemi & Kahana, Nava, 2009. "A Reevaluation of the Role of Family in Immigrants' Labor Market Activity: Evidence from a Comparison of Single and Married Immigrants," IZA Discussion Papers 4185, Institute for the Study of Labor (IZA).
    6. Al?cia Adser? & Ana M. Ferrer, 2014. "The Myth of Immigrant Women as Secondary Workers: Evidence from Canada," American Economic Review, American Economic Association, vol. 104(5), pages 360-364, May.
    7. Sarantis Lolos & Evangelia Papapetrou, 2011. "Housing credit and female labour supply: assessing the evidence from Greece," Working Papers 141, Bank of Greece.
    8. Alicia Adsera & Ana Ferrer, 2014. "Labour Market Progression of Canadian Immigrant Women," CReAM Discussion Paper Series 1434, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Cobb-Clark, Deborah & Crossley, Thomas F., 2004. "Revisiting the family investment hypothesis," Labour Economics, Elsevier, vol. 11(3), pages 373-393, June.
    10. Basilio, Leilanie & Bauer, Thomas K. & Sinning, Mathias, 2009. "Analyzing the labor market activity of immigrant families in Germany," Labour Economics, Elsevier, vol. 16(5), pages 510-520, October.
    11. Deborah Cobb-Clark & Marie D. Connolly & Christopher Worswick, 2000. "Does the Family Investment Hypothesis Explain Immigrant Labor Market Activity?," Econometric Society World Congress 2000 Contributed Papers 0828, Econometric Society.
    12. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January.
    13. Adserà, Alícia & Ferrer, Ana, 2016. "Occupational skills and labour market progression of married immigrant women in Canada," Labour Economics, Elsevier, vol. 39(C), pages 88-98.
    14. David C. Ribar, 2013. "Immigrants’ time use: a survey of methods and evidence," Chapters,in: International Handbook on the Economics of Migration, chapter 20, pages 373-392 Edward Elgar Publishing.
    15. Rochelle Belkar & Lynne Cockerell & Rebecca Edwards, 2007. "Labour Force Participation and Household Debt," RBA Research Discussion Papers rdp2007-05, Reserve Bank of Australia.
    16. repec:zbw:rwirep:0024 is not listed on IDEAS
    17. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," Umeå Economic Studies 625, Umeå University, Department of Economics.
    18. Seik Kim & Nalina Varanasi, "undated". "Labor Supply of Married Women in Credit-Constrained Households: Theory and Evidence," Working Papers UWEC-2010-01, University of Washington, Department of Economics.
    19. McDonald, James Ted & Worswick, Christopher, 2013. "Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006," CLSSRN working papers clsrn_admin-2013-23, Vancouver School of Economics, revised 29 Apr 2013.
    20. Deborah Cobb-Clark & Marie D. Connolly & Christopher Worswick, 2001. "The Job Search and Investments of Immigrant Families," CEPR Discussion Papers 432, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    21. Hou, Feng & Picot, Garnett, 2003. "The Rise in Low-income Rates Among Immigrants in Canada," Analytical Studies Branch Research Paper Series 2003198e, Statistics Canada, Analytical Studies Branch.
    22. Leilanie Basilio & Thomas K. Bauer & Mathias Sinning, 2007. "Analyzing the Labor Market Activity of Immigrant Families in Germany," Ruhr Economic Papers 0024, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    23. Alicia Adsera & Ana Ferrer, 2015. "Occupational Skills and Labour Market Progression of Canadian Immigrant Women," Working Papers 1504, University of Waterloo, Department of Economics, revised Dec 2015.

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