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From Engineer to Taxi Driver? Language Proficiency and the Occupational Skills of Immigrants

Author

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  • Susumu Imai

    (UTS Business School, University of Technology, Sydney, Australia)

  • Derek Stacey

    (Department of Economics, Ryerson University, Toronto, Canada)

  • Casey Warman

    (Department of Economics, Dalhousie University, Halifax, Canada)

Abstract

We examine the ability of immigrants to transfer the occupational human capital they acquired prior to immigration. We first augment a model of occupational choice to study the implications of language proficiency on the cross-border transferability of occupational human capital. We then explore the empirical predictions using information about the skill requirements from the O*NET and a unique dataset that includes both the last source country occupation and the first four years of occupations in Canada. We supplement the analysis using Census estimates for the same cohort with source country occupational skill requirements predicted using detailed human capital related information such as field of study. We find that male immigrants to Canada were employed in source country occupations that typically require high levels of cognitive skills, but rely less intently on manual skills. Following immigration, they find initial employment in occupations that require the opposite. Consistent with the hypothesized asymmetric role of language in the transferability of previously acquired cognitive and manual skills, these discrepancies are larger among immigrants with limited language fluency.

Suggested Citation

  • Susumu Imai & Derek Stacey & Casey Warman, 2014. "From Engineer to Taxi Driver? Language Proficiency and the Occupational Skills of Immigrants," Working Papers 040, Toronto Metropolitan University, Department of Economics, revised Aug 2018.
  • Handle: RePEc:rye:wpaper:wp040
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    2. Eduard Storm, 2022. "Task specialization and the Native‐Foreign Wage Gap," LABOUR, CEIS, vol. 36(2), pages 167-195, June.
    3. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    4. Jiang, Shiyu, 2020. "Task Supply, Wage Earning, and Segmentation among Natives and Two Generations of Immigrants," MPRA Paper 103990, University Library of Munich, Germany.
    5. Audra J. Bowlus & Masashi Miyairi & Chris Robinson, 2016. "Immigrant job search assimilation in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 5-51, February.
    6. Budría, Santiago & Martínez-de-Ibarreta, Carlos, 2021. "Education and skill mismatches among immigrants: The impact of host language proficiency," Economics of Education Review, Elsevier, vol. 84(C).
    7. Aslan Zorlu, 2016. "Immigrants’ occupational mobility—Down and back up again," IZA World of Labor, Institute of Labor Economics (IZA), pages 290-290, August.
    8. Borjas, George J. & Cassidy, Hugh, 2019. "The wage penalty to undocumented immigration," Labour Economics, Elsevier, vol. 61(C).
    9. Angela Daley & Min Hu & Casey Warman, 2019. "Language proficiency and immigrants’ economic integration," IZA World of Labor, Institute of Labor Economics (IZA), pages 469-469, December.
    10. Kawaguchi, Daiji & Toriyabe, Takahiro, 2022. "Measurements of skill and skill-use using PIAAC," Labour Economics, Elsevier, vol. 78(C).
    11. Younjun Kim & Eric Thompson, 2021. "Routine-Biased Technological Change and Declining Employment Rate of Immigrants," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(3), pages 319-353, June.
    12. Fang, Tony & Zhang, Tingting & Hartley, John, 2023. "Examining the Determinants of Managers' Hiring Attitudes Towards Immigrant Workers: Evidence from an Employer Survey," IZA Discussion Papers 16219, Institute of Labor Economics (IZA).
    13. Storm, Eduard, 2021. "Task specialization and the native-foreign wage gap: Evidence from worker-level data," Ruhr Economic Papers 928, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Rebecca Lessem & Carl Sanders, 2020. "Immigrant Wage Growth In The United States: The Role Of Occupational Upgrading," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(2), pages 941-972, May.
    15. Nick Manuel & Miana Plesca, 2020. "Skill transferability and the earnings of immigrants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1404-1428, November.
    16. Alícia Adserà & Ana Ferrer, 2021. "Linguistic Proximity and the Labour Market Performance of Immigrant Men in Canada," LABOUR, CEIS, vol. 35(1), pages 1-23, March.
    17. Stephen R.G. Jones & Fabian Lange & W. Craig Riddell & Casey Warman, 2023. "The great Canadian recovery: The impact of COVID‐19 on Canada's labour market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 791-838, August.
    18. Hanna Wielandt, 2015. "Employment Polarization and Immigrant Employment Opportunities," SFB 649 Discussion Papers SFB649DP2015-025, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.

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    More about this item

    Keywords

    Occupational Mobility; Language Proficiency; Skills; Human Capital; Immigration; Field of Study;
    All these keywords.

    JEL classification:

    • 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General

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