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Immigrant employment and earnings growth in Canada and the USA: evidence from longitudinal data

Author

Listed:
  • Neeraj Kaushal

    (Columbia University)

  • Yao Lu

    (Columbia University)

  • Nicole Denier

    (McGill University)

  • Julia Shu-Huah Wang

    (Columbia University
    The University of Hong Kong)

  • Stephen J. Trejo

    (University of Texas)

Abstract

We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the USA using nationally representative longitudinal datasets covering 1996–2008. Models with person fixed effects show that, on average, immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the USA, on the other hand, experience positive annual growth in all three domains relative to US-born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the USA than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:jopoec:v:29:y:2016:i:4:d:10.1007_s00148-016-0600-5
    DOI: 10.1007/s00148-016-0600-5
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    2. Yu, Yip-Ching & Nimeh, Zina, 2020. "Segmented paths of welfare assimilation," MERIT Working Papers 2020-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. María Lucila Osorio Andrade Osorio & Sergio Madero & Regina A. Greenwood, 2019. "Humanism Under Construction: the Case of Mexican Circular Migration," Humanistic Management Journal, Springer, vol. 4(1), pages 55-69, July.
    4. Ameed Saabneh & Rebbeca Tesfai, 2021. "Does Immigrant Selection Policy Matter? Labor Market Integration of Ethiopian Immigrants in Israel and the United States," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(5), pages 955-985, October.
    5. Susumu Imai & Derek Stacey & Casey Warman, 2019. "From engineer to taxi driver? Language proficiency and the occupational skills of immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 914-953, August.
    6. Randall Akee & Maggie R. Jones, 2019. "Immigrants’ Earnings Growth and Return Migration from the U.S.: Examining their Determinants using Linked Survey and Administrative Data," NBER Working Papers 25639, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    US immigrants; Canadian immigrants; Economic assimilation; Longitudinal data; Immigration; Employment; Wages; Comparative study;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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