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Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data

Author

Listed:
  • Kaushal, Neeraj

    () (Columbia University)

  • Lu, Yao

    () (Columbia University)

  • Denier, Nicole

    () (McGill University)

  • Wang, Julia Shu-Huah

    () (Columbia University)

  • Trejo, Stephen

    () (University of Texas at Austin)

Abstract

We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the U.S. using nationally representative longitudinal datasets covering 1996-2008. Models with person fixed effects show that on average immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the U.S., on the other hand, experience positive annual growth in all three domains relative to U.S. born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the U.S. than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

Suggested Citation

  • Kaushal, Neeraj & Lu, Yao & Denier, Nicole & Wang, Julia Shu-Huah & Trejo, Stephen, 2015. "Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data," IZA Discussion Papers 9495, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9495
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    References listed on IDEAS

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    Cited by:

    1. Randall Akee & Maggie R. Jones, 2019. "Immigrants’ Earnings Growth and Return Migration from the U.S.: Examining their Determinants using Linked Survey and Administrative Data," NBER Working Papers 25639, National Bureau of Economic Research, Inc.
    2. María Lucila Osorio Andrade Osorio & Sergio Madero & Regina A. Greenwood, 2019. "Humanism Under Construction: the Case of Mexican Circular Migration," Humanistic Management Journal, Springer, vol. 4(1), pages 55-69, July.
    3. Susumu Imai & Derek Stacey & Casey Warman, 2019. "From engineer to taxi driver? Language proficiency and the occupational skills of immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 914-953, August.
    4. Benoit Dostie & Mohsen Javdani, 2020. "Immigrants and Workplace Training: Evidence from Canadian Linked Employer–Employee Data," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 275-315, April.

    More about this item

    Keywords

    U.S. immigrants; Canadian immigrants; economic assimilation; longitudinal data; immigration; employment; wages; comparative study;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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