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International graduates and labor market outcomes of native graduates: Evidence from Canada

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  • Qiu, Kangyu

Abstract

I study a Canadian policy reform that relaxed post-graduation work restrictions for international students. Using administrative data and a cohort-based difference-in-differences design, I examine how the reform affected the labor market outcomes of native graduates. The reform substantially increased the employment of international graduates. The increase was uneven across regions, with areas that historically had greater exposure to international graduates experiencing larger inflows after the reform. Exploiting variation in exposure to international graduates across cohorts and regions among native graduates, I show that a higher inflow of international graduates reduced the employment rate of native graduates in the year of graduation by 1.9 percentage points. However, this effect was transitory and disappeared in subsequent years. In contrast, I find that the earnings of native graduates declined persistently by $1070 to $1750 in the graduation year and the following two years.

Suggested Citation

  • Qiu, Kangyu, 2026. "International graduates and labor market outcomes of native graduates: Evidence from Canada," Labour Economics, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:labeco:v:100:y:2026:i:c:s092753712600045x
    DOI: 10.1016/j.labeco.2026.102893
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