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Explaining the Labour Market Outcomes of First, Second and Third Generation Immigrants in Canada

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  • Tu, Jiong

    () (Human Resources and Skills Development Canada - Labour Program)

Abstract

This paper examines the effectiveness of Canadian immigration policy by analyzing the differences in the returns to education between first, second and third generation immigrant men. Regression results indicate that the second generation with high school education and lower do not earn significantly less than the equally educated third generation. However, the second generation with at least postsecondary education experience a wage deficit to the third generation. I explain the well-educated second generation’s difficulty in translating their intellectual ability into productivity by their ethnic and linguistic distance from the Canadian mainstream, and by a negative city-specific effect. Regression results using sub-samples categorized by subsequently interacting educational attainments with ethnicity, mother tongue and city of residence support these explanations. I then suggest that assimilation policies targeting the well-educated first and second generation immigrants be designed to promote the acceptance of their human capital by the Canadian labour market.

Suggested Citation

  • Tu, Jiong, 2010. "Explaining the Labour Market Outcomes of First, Second and Third Generation Immigrants in Canada," IZA Discussion Papers 5128, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5128
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    More about this item

    Keywords

    immigrant; second generation; wages; education; ethnicity; Canada;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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