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

Listed author(s):
  • 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
Handle: RePEc:iza:izadps:dp5129
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  1. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1992. "On the Labor Market Effects of Immigration and Trade," NBER Chapters, in: Immigration and the Workforce: Economic Consequences for the United States and Source Areas, pages 213-244 National Bureau of Economic Research, Inc.
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  7. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
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  10. Addison, Thomas & Worswick, Christopher, 2002. "The Impact of Immigration on the Earnings of Natives: Evidence from Australian Micro Data," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 68-78, March.
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  17. 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. 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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