Human Capital Quality and the Immigrant Wage Gap
We propose a new methodology for analyzing determinants of the wage gap between immigrants and natives. A Mincerian regression framework is extended to include GDP per capita in an immigrant’s country of birth as a proxy for the quality of education and work experience acquired in that country. In this regard, a central finding is that Canadian immigrants’ returns to schooling and work experience significantly increase with the GDP per capita of their country of birth. The contribution of quality of schooling and work experience to the immigrant wage gap is also examined. It is shown that lower human capital quality completely negates the endowment advantage that immigrants have in the areas of schooling and work experience, so that this factor is key to understanding why they earn less than Canadian natives. Since data on GDP per capita are available for most countries in the world over long periods of time, the proposed methodology can be applied to analyze immigrant wage gaps for a large set of countries for which common statistics on natives and immigrants are available.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: PO Box 450, Station A, Ottawa, Ontario, K1N 6N5|
Phone: (613) 562-5753
Fax: (613) 562-5999
Web page: http://www.socialsciences.uottawa.ca/eco/eng/index.asp
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bloom, Nicholas & Van Reenen, John, 2010.
"Human Resource Management and Productivity,"
CEPR Discussion Papers
7849, C.E.P.R. Discussion Papers.
- Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," NBER Working Papers 16019, National Bureau of Economic Research, Inc.
- Nick Bloom & John Van Reenen, 2010. "Human resource management and productivity," LSE Research Online Documents on Economics 28730, London School of Economics and Political Science, LSE Library.
- Nicholas Bloom & John Van Reenen, 2010. "Human Resource Management and Productivity," CEP Discussion Papers dp0982, Centre for Economic Performance, LSE.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1994.
"The Changing Labor Market Position of Canadian Immigrants,"
NBER Working Papers
4672, National Bureau of Economic Research, Inc.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
- Bloom, D. & Grenier, G. & Gunderson, M., 1993. "The Changing Labour Market Position of Canadian Immigrants," Working Papers 9305e, University of Ottawa, Department of Economics.
- Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011.
"Management Practices Across Firms and Countries,"
CEP Discussion Papers
dp1109, Centre for Economic Performance, LSE.
- Abdurrahman Aydemir & Mikal Skuterud, 2005.
"Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 38(2), pages 641-672, May.
- Aydemir, Abdurrahman & Skuterud, Mikal, 2004. "Explaining the Deteriorating Entry Earnings of Canada's Immigrant Cohorts: 1966-2000," Analytical Studies Branch Research Paper Series 2004225e, Statistics Canada, Analytical Studies Branch.
- Serge Coulombe & Jean-Francois Tremblay, 2009. "Migration and Skills Disparities across the Canadian Provinces," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 5-18.
- Javier Gardeazabal & Arantza Ugidos, 2004.
"More on Identification in Detailed Wage Decompositions,"
The Review of Economics and Statistics,
MIT Press, vol. 86(4), pages 1034-1036, November.
- Ugidos Olazabal, Arantza & Gardeazabal, Javier, 2002. "More on Identification on Detailed Wage Decompositions," DFAEII Working Papers 2002-17, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Javier Gardeazabal & Aratza Ugidos, . "More on identification in detailed wage decompositions," Studies on the Spanish Economy 140, FEDEA.
- Eric A. Hanushek & Ludger Woessmann, 2008.
"The Role of Cognitive Skills in Economic Development,"
Journal of Economic Literature,
American Economic Association, vol. 46(3), pages 607-68, September.
- Eric Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Discussion Papers 07-034, Stanford Institute for Economic Policy Research.
- Hanushek, Eric A. & Wößmann, Ludger, 2008. "The role of cognitive skills in economic development," Munich Reprints in Economics 20454, University of Munich, Department of Economics.
- Serge Coulombe & Gilles Grenier & Serge Nadeau, 2011.
"Quality of Work Experience and Economic Development—Estimates using Canadian Immigrant Data,"
1109E, University of Ottawa, Department of Economics.
- Serge Coulombe & Gilles Grenier & Serge Nadeau, 2014. "Quality of Work Experience and Economic Development: Estimates Using Canadian Immigrant Data," Journal of Human Capital, University of Chicago Press, vol. 8(3), pages 199 - 234.
- Joseph Schaafsma & Arthur Sweetman, 2001. "Immigrant earnings: age at immigration matters," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1066-1099, November.
- Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Sweetman, Arthur, 2004. "Immigrant Source Country Educational Quality and Canadian Labour Market Outcomes," Analytical Studies Branch Research Paper Series 2004234e, Statistics Canada, Analytical Studies Branch.
- Ather H. Akbari, 1996. "Provincial Income Disparities in Canada: Does the Quality of Education Matter?," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 337-39, April.
- Cawley, John & Heckman, James & Vytlacil, Edward, 2001. "Three observations on wages and measured cognitive ability," Labour Economics, Elsevier, vol. 8(4), pages 419-442, September.
- Myeong-Su Yun, 2005.
"A Simple Solution to the Identification Problem in Detailed Wage Decompositions,"
Western Economic Association International, vol. 43(4), pages 766-772, October.
- Yun, Myeong-Su, 2003. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," IZA Discussion Papers 836, Institute for the Study of Labor (IZA).
When requesting a correction, please mention this item's handle: RePEc:ott:wpaper:1212e. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Ritchot)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.