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The Economic Return on New Immigrants' Human Capital: the Impact of Occupational Matching

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  • Goldmann, Gustave
  • Sweetman, Arthur
  • Warman, Casey

Abstract

Using a data set that provides information on source country employment, we examine the effect of source and host country occupational matching on earnings and the economic rate of return to the foreign human capital of immigrants in Canada. Examining occupational distributions we find that immigrants converge very quickly to the skill distribution of the Canadian population in terms of the main job worked, although four years after landing they are still below the source country distribution. We also find that for a large proportion of immigrants, their intended occupation differs from their source country occupation. Although immigrants who are able to match their source and host country occupations obtain higher earnings, successful occupational matching does not have any impact on the return to foreign potential work experience. However, immigrants who match their source and host country occupations do have a higher return to schooling, particularly for females.

Suggested Citation

  • Goldmann, Gustave & Sweetman, Arthur & Warman, Casey, 2009. "The Economic Return on New Immigrants' Human Capital: the Impact of Occupational Matching," CLSSRN working papers clsrn_admin-2009-30, Vancouver School of Economics, revised 22 Apr 2009.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2009-30
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    File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2021%20-%20Goldmann,%20Warman,%20Sweetman.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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.

    More about this item

    Keywords

    Immigrants; Occupational Matching; Human Capital; Canada;

    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

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