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Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades

Author

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  • Frenette, Marc
  • Morissette, Rene

Abstract

Using census data covering the 1980 to 2000 period, we examine what outcomes would be necessary for cohorts of recent immigrants to achieve earnings parity with Canadian-born workers. Our results show that today's recent immigrants would have to experience a drastic rise of their relative age-earnings profile in the near future for their earnings to converge with their Canadian-born counterparts. The reason is simple: the greater relative earnings growth experienced by cohorts of recent immigrants has only partially offset the drastic deterioration in their relative earnings at entry.

Suggested Citation

  • Frenette, Marc & Morissette, Rene, 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.
  • Handle: RePEc:stc:stcp3e:2003215e
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    References listed on IDEAS

    as
    1. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    2. 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.
    3. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    4. Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 930-955, August.
    5. Hou, Feng & Picot, Garnett, 2003. "The Rise in Low-income Rates Among Immigrants in Canada," Analytical Studies Branch Research Paper Series 2003198e, Statistics Canada, Analytical Studies Branch.
    6. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    7. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
    8. Eric R. Eide & Mark H. Showalter, 1999. "Factors Affecting the Transmission of Earnings across Generations: A Quantile Regression Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 253-267.
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