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Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 – 2000

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  • Abdurrahman Aydemir
  • Mikal Skuterud

Abstract

. Using the 1981, 1986, 1991, 1996, and 2001 Canadian Censuses, we explore causes of the deterioration in entry earnings of successive cohorts of immigrant men and women. Roughly one‐third of the deterioration is explained by compositional shifts in language ability and region of birth. We find no evidence of a decline in the returns to foreign education for either immigrant men or immigrant women but a definite deterioration in the returns to foreign labour market experience, most strongly among men from non‐traditional source countries. We can explain roughly two‐thirds of the male and one‐half of the female deterioration without any reference to entry labour market conditions. When we also account for entry conditions, our results suggest Canada's immigrants of the late 1990s would otherwise have enjoyed entry earnings equal to or higher than their counterparts of the 1960s. Explication de la détérioration des gains à l’entrée sur le marché du travail pour les cohortes successsives d’immigrants au Canada: 1966–2000. En utilisant les recensements du Canada pour 1981, 1986, 1991, 1996 et 2001, on étudie les causes de la détérioration des gains à l’entrée sur le marché du travail pour les cohortes successives d’hommes et de femmes qui ont immigré au Canada. En gros un tiers de la détérioration s’explique par les changements dans la composition des cohortes en termes de compétence linguistique et de régions d’origine. On ne découvre aucune évidence d’un déclin dans les taux de rendement sur l’éducation acquise à l’étranger par les hommes ou femmes qui immigrent au Canada, mais une chute dans les rendements sur le capital d’expérience acquis sur le marché du travail à l’étranger. Ce dernier phénomène est notable surtout dans le groupe d’hommes provenant de pays d’origine non‐ traditionnels. On peut expliquer en gros les deux tiers de la détérioration pour les hommes, et la moitié de la détérioration pour les femmes, comme n’ayant aucun rapport avec les conditions du marché du travail. Quand on tient compte des conditions au moment de l’entrée sur le marché du travail, les résultats suggèrent que les immigrants de la fin des années 1990 ont joui de gains à l’entrée qui étaient égaux ou plus élevés que ceux de la cohorte des années 1960.

Suggested Citation

  • Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 – 2000," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 641-672, May.
  • Handle: RePEc:wly:canjec:v:38:y:2005:i:2:p:641-672
    DOI: 10.1111/j.0008-4085.2005.00297.x
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