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Immigrant earnings growth: selection bias or real progress?

Author

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  • Garnett Picot
  • Patrizio Piraino

Abstract

We use longitudinal tax data linked to immigrant landing records to study the effect of selective attrition on the estimated earnings assimilation of immigrants to Canada. Contrary to findings in the existing international literature, we show that the immigrantnative earnings gap closes at the same pace in longitudinal and crosssectional data. Lowearning immigrants are likely to leave the crosssectional samples over time, but the same is true for the native born. Our study suggests that immigrants to Canada have labour market participation dynamics similar to those of the native born.

Suggested Citation

  • Garnett Picot & Patrizio Piraino, 2013. "Immigrant earnings growth: selection bias or real progress?," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1510-1536, November.
    • Handle: RePEc:cje:issued:v:46:y:2013:i:4:p:1510-1536
    DOI: 10.1111/caje.12053
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    Cited by:

    1. Dostie, Benoit & Li, Jiang & Card, David & Parent, Daniel, 2023. "Employer policies and the immigrant–native earnings gap," Journal of Econometrics, Elsevier, vol. 233(2), pages 544-567.
    2. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," RFBerlin Discussion Paper Series 1402, ROCKWOOL Foundation Berlin (RFBerlin).
    3. Dustmann, Christian & Görlach, Joseph-Simon, 2016. "Estimating immigrant earnings profiles when migrations are temporary," Labour Economics, Elsevier, vol. 41(C), pages 1-8.
    4. Regina T. Riphahn & Irakli Sauer, 2024. "Earnings Assimilation of Post-Reunification East German Migrants in West Germany," CESifo Working Paper Series 11233, CESifo.
    5. Casey Warman & Matthew D. Webb & Christopher Worswick, 2019. "Immigrant category of admission and the earnings of adults and children: how far does the apple fall?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 53-112, January.
    6. Neeraj Kaushal & Yao Lu & Nicole Denier & Julia Shu-Huah Wang & Stephen J. Trejo, 2016. "Immigrant employment and earnings growth in Canada and the USA: evidence from longitudinal data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1249-1277, October.
    7. Michele Campolieti & Morley Gunderson & Olga Timofeeva & Evguenia Tsiroulnitchenko, 2013. "Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?," Journal of Labor Research, Springer, vol. 34(4), pages 455-475, December.
    8. David A. Green & Christopher Worswick, 2017. "Canadian economics research on immigration through the lens of theories of justice," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1262-1303, December.
    9. Haozhen Zhang & Jianwei Zhong & Cédric de Chardon, 2020. "Immigrants’ net direct fiscal contribution: How does it change over their lifetime?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1642-1662, November.
    10. Arthur Sweetman & Casey Warman, 2013. "Canada's Immigration Selection System and Labour Market Outcomes," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 141-160, May.
    11. Ana Damas de Matos, 2017. "Firm heterogeneity and immigrant wage assimilation," Applied Economics Letters, Taylor & Francis Journals, vol. 24(9), pages 653-657, May.
    12. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2016. "Immigrant job search assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 5-51, February.
    13. Manish Pandey & James Townsend, 2017. "Prior host-country work experience and immigrant labor market outcomes: evidence from Canada," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    14. Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, vol. 19(2), pages 241-259.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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