IDEAS home Printed from https://ideas.repec.org/a/spr/joimai/v24y2023i3d10.1007_s12134-022-00987-6.html
   My bibliography  Save this article

Policies, Potentials, and Pitfalls: the Impact of Economic Admission Categories on Recent Immigrant Earnings Disparities

Author

Listed:
  • Danielle Lamb

    (Ted Rogers School of Management, Toronto Metropolitan University (Formerly Ryerson University))

  • Rupa Banerjee

    (Ted Rogers School of Management, Toronto Metropolitan University (Formerly Ryerson University))

Abstract

We investigate the immigrant-native-born earnings gap by economic immigration sub-categories. We are interested in whether two-step immigration streams, such as the Canadian Experience Class (CEC), reduce or eliminate the immigrant earnings gap. We find that immigrants arriving under the CEC have higher raw mean earnings than native-born workers. However, after conditioning on observable characteristics, adjusted earnings’ advantages for CEC entrants remain only at the bottom 10th percentile of the earnings distribution. Our findings show modest earnings benefits for immigrants entering through two-step programs, but these benefits do not fully mitigate other competing signals of foreignness that are negatively associated with earnings.

Suggested Citation

  • Danielle Lamb & Rupa Banerjee, 2023. "Policies, Potentials, and Pitfalls: the Impact of Economic Admission Categories on Recent Immigrant Earnings Disparities," Journal of International Migration and Integration, Springer, vol. 24(3), pages 681-696, December.
    • Handle: RePEc:spr:joimai:v:24:y:2023:i:3:d:10.1007_s12134-022-00987-6
    DOI: 10.1007/s12134-022-00987-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12134-022-00987-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12134-022-00987-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 186-216, February.
    2. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LLC, vol. 8(4), pages 453-479, December.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. repec:sae:mrxval:v:48:y:2014:i:3:p:846-867 is not listed on IDEAS
    5. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    6. Arthur Sweetman & Casey Warman, 2014. "Former Temporary Foreign Workers and International Students as Sources of Permanent Immigration," Canadian Public Policy, University of Toronto Press, vol. 40(4), pages 392-407, December.
    7. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    8. Feng Hou & Garnett Picot, 2016. "Changing Immigrant Characteristics and Pre-Landing Canadian Earnings: Their Effect on Entry Earnings over the 1990s and 2000s," Canadian Public Policy, University of Toronto Press, vol. 42(3), pages 308-323, September.
    9. Emma Flynn & Harald Bauder, 2015. "The Private Sector, Institutions of Higher Education, and Immigrant Settlement in Canada," Journal of International Migration and Integration, Springer, vol. 16(3), pages 539-556, August.
    10. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
    11. Richard A. Wanner, 2003. "Entry Class and the Earnings Attainment of Immigrants to Canada, 1980­1995," Canadian Public Policy, University of Toronto Press, vol. 29(1), pages 53-71, March.
    12. Ana M. Ferrer & Garnett Picot & William Craig Riddell, 2014. "New Directions in Immigration Policy: Canada's Evolving Approach to the Selection of Economic Immigrants," International Migration Review, Wiley Blackwell, vol. 48(3), pages 846-867, September.
    13. Hou, Feng & Lu, Yuquian, 2017. "Transition from Temporary Foreign Workers to Permanent Residents, 1990 to 2014," Analytical Studies Branch Research Paper Series 2017389e, Statistics Canada, Analytical Studies Branch.
    14. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mustafizur Rahman & Marzuka Md. Al-Hasan, 2019. "Women in Bangladesh Labour Market: Determinants of Participation, Gender Wage Gap and Returns to Schooling," CPD Working Paper 124, Centre for Policy Dialogue (CPD).
    2. Ibrahim Bousmah & Gilles Grenier, 2022. "Labor shortages and immigration: The case of the Canadian agriculture sector," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 220-235, January.
    3. Valentine Fays & Benoît Mahy & François Rycx, 2023. "Wage differences according to workers' origin: The role of working more upstream in GVCs," LABOUR, CEIS, vol. 37(2), pages 319-342, June.
    4. Huong Thu Le & Ha Trong Nguyen, 2018. "The evolution of the gender test score gap through seventh grade: new insights from Australia using unconditional quantile regression and decomposition," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-42, December.
    5. Kilic, Talip & Palacios-López, Amparo & Goldstein, Markus, 2015. "Caught in a Productivity Trap: A Distributional Perspective on Gender Differences in Malawian Agriculture," World Development, Elsevier, vol. 70(C), pages 416-463.
    6. Zhu, Rong, 2016. "Wage differentials between urban residents and rural migrants in urban China during 2002–2007: A distributional analysis," China Economic Review, Elsevier, vol. 37(C), pages 2-14.
    7. Johar, Meliyanni & Jones, Glenn & Keane, Micheal P. & Savage, Elizabeth & Stavrunova, Olena, 2013. "Discrimination in a universal health system: Explaining socioeconomic waiting time gaps," Journal of Health Economics, Elsevier, vol. 32(1), pages 181-194.
    8. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    9. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    10. Mathä, Thomas Y. & Porpiglia, Alessandro & Ziegelmeyer, Michael, 2017. "Household wealth in the euro area: The importance of intergenerational transfers, homeownership and house price dynamics," Journal of Housing Economics, Elsevier, vol. 35(C), pages 1-12.
    11. Waitkus, Nora & Minkus, Lara, 2021. "Investigating the gender wealth gap across occupational classes," LSE Research Online Documents on Economics 108206, London School of Economics and Political Science, LSE Library.
    12. Arceo-Gómez, Eva O. & Campos-Vázquez, Raymundo M., 2014. "Evolución de la brecha salarial de género en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(323), pages .619-653, julio-sep.
    13. Brahim Boudarbat & Marie Connolly, 2013. "Brain Drain: Why Do Some Post-Secondary Graduates Choose to Work in the United States?," CIRANO Project Reports 2013rp-12, CIRANO.
    14. Gabriella Berloffa & Francesca Paolini, 2019. "Decomposing Immigrant Differences in Physical and Mental Health: A 'Beyond the Mean' Analysis," DEM Working Papers 2019/4, Department of Economics and Management.
    15. Koomen, Miriam & Backes-Gellner, Uschi, 2022. "Occupational tasks and wage inequality in West Germany: A decomposition analysis," Labour Economics, Elsevier, vol. 79(C).
    16. Gbemisola Oseni & Paul Corral & Markus Goldstein & Paul Winters, 2015. "Explaining gender differentials in agricultural production in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 46(3), pages 285-310, May.
    17. Florent Dubois & Christophe Muller, 2017. "Decomposing Well-being Measures in South Africa: The Contribution of Residential Segregation to Income Distribution," AMSE Working Papers 1719, Aix-Marseille School of Economics, France.
    18. Saule Kemelbayeva, 2020. "Returns to schooling in Kazakhstan: an update using a pseudo-panel approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(3), pages 437-487, September.
    19. Carl Lin & Tony Fang & Mei Hsu, 2024. "Migrants from a Different Shore: Earnings and Economic Assimilation of Immigrants from China in the United States," Journal of Labor Research, Springer, vol. 45(3), pages 305-349, September.
    20. Sandeep Mohapatra & Bruno Wichmann & Philippe Marcoul, 2018. "Removing The “Veil Of Ignorance”: Nonlinearities In Education Effects On Gender Wage Inequalities," Contemporary Economic Policy, Western Economic Association International, vol. 36(4), pages 644-666, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joimai:v:24:y:2023:i:3:d:10.1007_s12134-022-00987-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.