IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17756.html
   My bibliography  Save this paper

The Short-Term Effects of COVID-19 on Labour Market Outcomes of Recent Immigrants to Canada

Author

Listed:
  • Fang, Tony

    (Memorial University of Newfoundland)

  • Gunderson, Morley

    (University of Toronto)

  • Ha, Viet Hoang

    (Memorial University of Newfoundland)

  • Ming, Hui

    (Sichuan University)

Abstract

Our difference-in-difference analysis indicates that Covid-19 had a disproportionately adverse effect on the employment of recent immigrants relative to the Canadian-born and this was especially the case in lower-level occupations and in industries hard hit by the pandemic. The effects of Covid on actual hours worked for those who remained employed were modest as were the differential effects for recent immigrants, highlighting that most of the adjustment occurred in the extensive margin of reduced employment rather than the intensive margin of hours worked. Covid was associated with higher wages for recent immigrants who remain employed relative to their Canadian-born counterparts, and this is especially the case for recent immigrants in lower-level occupations and hard-hit industries. Reasons for these patterns are discussed.

Suggested Citation

  • Fang, Tony & Gunderson, Morley & Ha, Viet Hoang & Ming, Hui, 2025. "The Short-Term Effects of COVID-19 on Labour Market Outcomes of Recent Immigrants to Canada," IZA Discussion Papers 17756, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17756
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17756.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stijn Baert & Bart Cockx & Niels Gheyle & Cora Vandamme, 2015. "Is There Less Discrimination in Occupations Where Recruitment Is Difficult?," ILR Review, Cornell University, ILR School, vol. 68(3), pages 467-500, May.
    2. Thomas Lemieux & Kevin Milligan & Tammy Schirle & Mikal Skuterud, 2020. "Initial Impacts of the COVID-19 Pandemic on the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 55-65, July.
    3. Kourtney Koebel & Dionne Pohler, 2020. "Labor Markets in Crisis: The Double Liability of Low‐Wage Work During COVID‐19," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 503-531, October.
    4. Guangying Mo & Wendy Cukier & Akalya Atputharajah & Miki Itano Boase & Henrique Hon, 2020. "Differential Impacts during COVID-19 in Canada: A Look at Diverse Individuals and Their Businesses," Canadian Public Policy, University of Toronto Press, vol. 46(S3), pages 261-271, October.
    5. Rafael Gomez & Morley Gunderson & Xiaoyu Huang & Tingting Zhang, 2015. "Do Immigrants Gain or Lose by Occupational Licensing?," Canadian Public Policy, University of Toronto Press, vol. 41(s1), pages 80-97, August.
    6. Charles M. Beach & Christopher Worswick, 2011. "Toward Improving Canada's Skilled Immigration Policy: An Evaluation Approach," C.D. Howe Institute Policy Studies, C.D. Howe Institute, number 20111, January.
    7. Seung Jin Cho & Jun Yeong Lee & John V. Winters, 2021. "Employment impacts of the COVID‐19 pandemic across metropolitan status and size," Growth and Change, Wiley Blackwell, vol. 52(4), pages 1958-1996, December.
    8. Thomas F. Crossley & James Ted McDonald & Christopher Worswick, 2001. "Immigrant Benefit Receipt Revisited: Sensitivity to the Choice of Survey Years and Model Specification," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 379-397.
    9. Charles M. Beach & Christopher Worswick, 2011. "Toward Improving Canada's Skilled Immigration Policy: An Evaluation Approach," C.D. Howe Institute Policy Studies, C.D. Howe Institute, number 2011, January.
    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. David A. Green & Christopher Worswick, 2017. "Canadian economics research on immigration through the lens of theories of justice," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1262-1303, December.
    2. Peter Dungan & Tony Fang & Morley Gunderson, 2013. "Macroeconomic Impacts of C anadian Immigration: Results from a Macro Model," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 174-195, March.
    3. Matthew Doyle & Mikal Skuterud & Christopher Worswick, 2025. "The economics of Canadian immigration levels," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(1), pages 109-135, February.
    4. Christopher Worswick, 2013. "Improving Immigrant Selection: Further Changes Are Required Before Increasing Inflows," e-briefs 157, C.D. Howe Institute.
    5. Peri, Giovanni & Shih, Kevin Y., 2013. "Foreign Scientists and Engineers and Economic Growth in Canadian Labor Markets," IZA Discussion Papers 7367, Institute of Labor Economics (IZA).
    6. Casey Warman & Christopher Worswick, 2015. "Technological change, occupational tasks and declining immigrant outcomes: Implications for earnings and income inequality in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 736-772, May.
    7. Abbott, Michael G. & Beach, Charles M., 2011. "Immigrant Earnings Differences Across Admission Categories and Landing Cohorts in Canada," CLSSRN working papers clsrn_admin-2011-20, Vancouver School of Economics, revised 21 Aug 2011.
    8. Mason, Joyce & Laporte, Audrey & McDonald, James Ted & Kurdyak, Paul & Fosse, Ethan & de Oliveira, Claire, 2024. "Assessing the “healthy immigrant effect” in mental health: Intra- and inter-cohort trends in mood and/or anxiety disorders," Social Science & Medicine, Elsevier, vol. 340(C).
    9. Fang, Tony & Gunderson, Morley & Ha, Viet Hoang & Ming, Hui, 2024. "Intersectional Analysis of the Labour Market Impacts of COVID: The Triple-Whammy of Females, Children, and Lower Skill," IZA Discussion Papers 17235, Institute of Labor Economics (IZA).
    10. Arthur Sweetman & Casey Warman, 2012. "The Structure Of Canada`s Immigration System And Canadian Labour Market Outcomes," Working Paper 1292, Economics Department, Queen's University.
    11. Pettinicchio, David & Maroto, Michelle Lee & Chai, Lei & Lukk, Martin, 2000. "Findings from an online survey on the mental health effects of COVID-19 on Canadians with disabilities and chronic health conditions," SocArXiv 9d5j4, Center for Open Science.
    12. Ferrer, Ana M. & Picot, Garnett & Riddell, W. Craig, 2012. "New Directions in Immigration Policy: Canada’s Evolving Approach to Immigration Selection," CLSSRN working papers clsrn_admin-2012-34, Vancouver School of Economics, revised 30 Nov 2012.
    13. Rafael Gomez & Morley Gunderson & René Morissette, 2013. "Labour Adjustment Implications of Service Offshoring: Evidence from Canada," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 148-173, March.
    14. Fang, Tony & Zhang, Tingting & Hartley, John, 2023. "Examining the Determinants of Managers' Hiring Attitudes Towards Immigrant Workers: Evidence from an Employer Survey," IZA Discussion Papers 16219, Institute of Labor Economics (IZA).
    15. Colin Busby & Miles Corak, 2014. "Don’t Forget the Kids: How Immigrant Policy Can Help Immigrants’ Children," e-briefs 174, C.D. Howe Institute.
    16. Warman, Casey & Worswick, Christopher, 2014. "Technological Change and Declining Immigrant Outcomes, Implications for Income Inequality in Canada," CLSSRN working papers clsrn_admin-2014-51, Vancouver School of Economics, revised 25 Nov 2014.
    17. Casey Warman & Matthew D. Webb & Christopher Worswick, 2019. "Immigrant category of admission and the earnings of adults and children: how far does the apple fall?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 53-112, January.
    18. Michele Campolieti & Morley Gunderson & Olga Timofeeva & Evguenia Tsiroulnitchenko, 2013. "Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?," Journal of Labor Research, Springer, vol. 34(4), pages 455-475, December.
    19. 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.
    20. Bibhuti Sarker, 2025. "Factors affecting firm‐level job cuts during the COVID‐19 pandemic: A cross‐country evidence," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1873-1892, April.

    More about this item

    Keywords

    difference-in-difference; COVID-19; Canada; recent immigrants; employment; hours; wages;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iza:izadps:dp17756. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.