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Temporary Foreign Workers and Former International Students as a Source of Permanent Immigration

  • Sweetman, Arthur
  • Warman, Casey

We compare the economic outcomes of former Temporary Foreign Workers (TFWs) and former international students to immigrants who have no Canadian human capital at the time of landing. First, controlling for all possible variables that are adjustable under the current Canadian points system, we find that TFWs and students have better earning and employment outcomes, although by four years after landing, there is no difference between the employment outcomes of students or earnings of TFWs and workers with no pre-immigration Canadian human capital. Predicting the points that immigrants would obtain based on their observable human capital under the points system, each point increases earnings by around 2 percent and the probability of being employed by around half a percent. We also find that the predicted points of the respondent helps predict the earning and employment outcomes of the spouse. Next we examine the outcomes of immigrants based on entry class separately by gender. We find that both male and female Principal Applicants entering through the Skilled Worker program perform much better than immigrants entering through most of the other classes, although, for males, Principal Applicants entering under the Family Class are more likely to be employed at six months and two years after landing. Finally, restricting the sample to immigrants who were directly assessed based on economic criteria (Skilled Worker Principal Applicants), we discover that for males, immigrants who had previously worked in Canada as TFWs have much better outcomes in terms of entry earnings than immigrants who have no pre-Canadian experience at landing. Former international students experience an advantage in terms of hourly earnings, but much smaller than that experienced by TFWs, and students experience no earnings advantage in terms of weekly earnings. Overall, the evidence suggests that temporary foreign worker or student status does provide some signal of how well an immigrant will integrate economically.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2025%20-%20Sweetman%20Warman.pdf
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Paper provided by Vancouver School of Economics in its series CLSSRN working papers with number clsrn_admin-2009-34.

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Length: 70 pages
Date of creation: 22 Jun 2009
Date of revision: 22 Jun 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-34
Contact details of provider: Web page: http://www.clsrn.econ.ubc.ca/

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  1. Hou, Feng & Picot, Garnett & Coulombe, Simon, 2007. "Chronic Low Income and Low-income Dynamics Among Recent Immigrants," Analytical Studies Branch Research Paper Series 2007294e, Statistics Canada, Analytical Studies Branch.
  2. Ana Ferrer & David A. Green & W. Craig Riddell, 2006. "The Effect of Literacy on Immigrant Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
  3. Chiswick, Barry R. & DebBurman, Noyna, 2004. "Educational attainment: analysis by immigrant generation," Economics of Education Review, Elsevier, vol. 23(4), pages 361-379, August.
  4. 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.
  5. Peter S. Li, 2003. "Initial Earnings and Catch-Up Capacity of Immigrants," Canadian Public Policy, University of Toronto Press, vol. 29(3), pages 319-337, September.
  6. 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.
  7. Abdurrahman Aydemir & Chris Robinson, 2008. "Global labour markets, return, and onward migration," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1285-1311, November.
  8. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, 05.
  9. repec:cup:cbooks:9780521012263 is not listed on IDEAS
  10. Green, David A. & Worswick, Christopher, 2012. "Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects," Labour Economics, Elsevier, vol. 19(2), pages 241-259.
  11. Casey Warman, 2006. "Ethnic Enclaves and Immigrant Earnings Growth," Working Papers 1261, Queen's University, Department of Economics.
  12. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January.
  13. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355, April.
  14. Amélie Lafrance & Casey Warman & Frances Woolley, 2009. "Sexual Identity and the Marriage Premium," Carleton Economic Papers 09-08, Carleton University, Department of Economics.
  15. 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.
  16. 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.
  17. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-54, July.
  18. Hoyt Bleakley & Aimee Chin, 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 481-496, May.
  19. 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.
  20. Gonzalez, Arturo, 2003. "The education and wages of immigrant children: the impact of age at arrival," Economics of Education Review, Elsevier, vol. 22(2), pages 203-212, April.
  21. Paul W. Miller, 1999. "Immigration Policy and Immigrant Quality: The Australian Points System," American Economic Review, American Economic Association, vol. 89(2), pages 192-197, May.
  22. repec:cup:cbooks:9780521812832 is not listed on IDEAS
  23. Charles Beach & Alan G. Green & Christopher Worswick, 2006. "Impacts of the Point System and Immigration Policy Levers on Skill Characteristics of Canadian Immigrants," Working Papers 1115, Queen's University, Department of Economics.
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