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You Can Take it with You! The Returns to Foreign Human Capital of Male Temporary Foreign Workers

Author

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  • Casey Warman

    () (Queen's University)

Abstract

The research on immigration has found falling labor market outcomes of immigrants in many Western countries. In Canada, one of the major causes has been the decline in the returns to foreign work experience. Using the 1991, 1996 and 2001 Canadian Census Master Datafiles and applying both parametric and semiparametric techniques, it is found that unlike recently landed male immigrants, temporary foreign workers have no difficulty transferring their human capital to the Canadian labor market and in particular, they obtain very high returns to their foreign work experience. This is even true for temporary foreign workers from non-traditional backgrounds, a group that has had particular difficulty receiving returns to their foreign work experience for recent immigrant cohorts and now composes the majority of Canada’s immigration. It is likely that this premium can be partially attributed to the different selection process that temporary foreign workers and immigrants enter Canada under. While immigrants for the most part are selected by the government, the selection process for temporary foreign workers is driven by employers and employers may be better able to assess the transferability of the worker’s foreign human capital.

Suggested Citation

  • Casey Warman, 2007. "You Can Take it with You! The Returns to Foreign Human Capital of Male Temporary Foreign Workers," Working Papers 1125, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1125
    as

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    File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1125.pdf
    File Function: First version 2007
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    References listed on IDEAS

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    Cited by:

    1. Leilanie Basilio & Thomas K. Bauer & Anica Kramer, 2017. "Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany," LABOUR, CEIS, vol. 31(3), pages 245-264, September.
    2. Sweetman, Arthur & Warman, Casey, 2009. "Temporary Foreign Workers and Former International Students as a Source of Permanent Immigration," CLSSRN working papers clsrn_admin-2009-34, Vancouver School of Economics, revised 22 Jun 2009.
    3. repec:spr:izamig:v:8:y:2018:i:1:d:10.1186_s40176-017-0114-2 is not listed on IDEAS

    More about this item

    Keywords

    Immigrants; Earnings; Temporary Foreign Workers; Partial linear models; Nonparametric regressions; Canada; Nonpermanent residents; semiparametric;

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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