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The Impact of Immigration on the Labour Market Outcomes of Native-Born Canadians

  • Tu, Jiong

    ()

    (Human Resources and Skills Development Canada - Labour Program)

Registered author(s):

Although immigration has become a major growth factor for Canadian labour force, there is little economic research on the effect of immigration on native-born Canadians' labour market performance. This paper examines the relationship between changes in the share of immigrants by sub-labour markets (categorized by skill types and geographic areas) and changes in native wage growth by a two-stage regression analysis, using 1991, 1996 and 2001 Canadian Census data files. After accounting for biases due to native mobility, endogenous location of immigrants and labour demand shifts, the estimated effects of immigration are consistently insignificant or significantly positive. The results are robust to various specifications of sub-labour markets at city, provincial and national levels, suggesting that there is no evidence for a negative impact on native wage growth rate from the large immigrant influx during the 1990s.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5129.

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Length: 24 pages
Date of creation: Aug 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5129
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  1. Aslan Zorlu & Joop Hartog, 2002. "The effect of immigration on wages in three European countries," NIMA Working Papers 19, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
  2. Finis Welch, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," UCLA Economics Working Papers 146, UCLA Department of Economics.
  3. D Amuri, Francesco & Ottaviano, Gianmarco & Peri, Giovanni, 2008. "The Labour Market Impact of Immigration in Western Germany in the 1990's," CEPR Discussion Papers 6736, C.E.P.R. Discussion Papers.
  4. Gianmarco I.P. Ottaviano & Giovanni Peri, 2006. "Rethinking the Effects of Immigration on Wages," NBER Working Papers 12497, National Bureau of Economic Research, Inc.
  5. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1991. "On the Labor Market Effects of Immigration and Trade," NBER Working Papers 3761, National Bureau of Economic Research, Inc.
  6. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-51, May.
  7. David Card, 1989. "The Impact of the Mariel Boatlift on the Miami Labor Market," NBER Working Papers 3069, National Bureau of Economic Research, Inc.
  8. David C. Mar� & Steven Stillman, 2010. "The Impact of Immigration on the Geographic Mobility of New Zealanders," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 247-259, 06.
  9. Jordan Shan, 1999. "Immigration and Unemployment: New evidence from Australia and New Zealand," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(2), pages 253-260.
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  11. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
  12. Joseph Altonji & David Card, 1989. "The Effects of Immigration on the Labor Market Outcome of Less-Skilled Natives," Working Papers 636, Princeton University, Department of Economics, Industrial Relations Section..
  13. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  14. Kristin Butcher & David Card, 1991. "Immigration and Wages: Evidence From the 1980's," Working Papers 661, Princeton University, Department of Economics, Industrial Relations Section..
  15. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S65-97, October.
  16. LaLonde, Robert J & Topel, Robert H, 1991. "Immigrants in the American Labor Market: Quality, Assimilation, and Distributional Effects," American Economic Review, American Economic Association, vol. 81(2), pages 297-302, May.
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  18. repec:nbr:nberbk:abow91-1 is not listed on IDEAS
  19. Alan G. Green & David A. Green, 1999. "The Economic Goals of Canada's Immigration Policy, Past and Present," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 425-451, December.
  20. Hsiao-Chuan Chang, 2004. "The Impact of Immigration on the Wage Differential in Australia," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 49-57, 03.
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  23. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-50, July.
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