Paths to Permanence: Permit Categories and Earnings Trajectories of Workers in Canada's International Mobility Program

This study uses the Longitudinal Immigration Database to analyze the earnings trajectories of two-step immigrants in Canada, starting from their initial temporary work permit. The primary objective is to provide critical insights into the relationship between the temporary permit category and newcomer labour market integration. Focusing on four primary permit subcategories in the International Mobility Program—postgraduate work permit holders, spouses of skilled workers and students, intra-company transferees, and working holidaymakers - the research explores how the labour market outcomes of these diverse temporary permit holders compare with those of one-step immigrants arriving directly from abroad. The findings underscore significant disparities in labour market outcomes in the immigrant population, contingent upon their specific pre-migration work permit category. Notably, individuals with post-graduate work permits and intra-company transfer permits have higher initial earnings than those without prior work or study permits. Conversely, working holidaymakers experience lower initial earnings, and the earnings of spousal permit holders vary by gender. Furthermore, the study identifies diverse patterns in annual earnings growth over time associated with different permit types. The implications of these findings for policy are discussed.