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Immigrant Earnings Growth: Selection Bias or Real Progress?

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  • Picot, Garnett
  • Piraino, Patrizio

Abstract

We use longitudinal tax data linked to immigrant landing records to estimate the earnings growth of immigrants from three entering cohorts since the early 1980s. Selective attrition by low-earning immigrants might result in lower earnings growth with years since migration in longitudinal data compared to repeated cross-sections. Existing studies on U.S. data have found exactly this result (Lubotsky 2007, JPE). We ask whether a similar bias is observed in the Canadian data and find that it is not. We show that while low-earnings immigrants are more likely to leave the cross-sectional samples over time, the same is true for the Canadian born population. We conclude that there is no evidence of selective labour force participation patterns among immigrants in Canada compared to the native born population.

Suggested Citation

  • Picot, Garnett & Piraino, Patrizio, 2010. "Immigrant Earnings Growth: Selection Bias or Real Progress?," CLSSRN working papers clsrn_admin-2010-35, Vancouver School of Economics, revised 28 Dec 2010.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2010-35
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    9. George J. Borjas & Bernt Bratsberg, 2021. "Who Leaves? The Outmigration Of The Foreign-Born," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 5, pages 93-104, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Christian Dustmann, 2014. "Selective Outmigration and the Estimation of Immigrants Earnings Profiles," CReAM Discussion Paper Series 1402, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    2. Dustmann, Christian & Görlach, Joseph-Simon, 2016. "Estimating immigrant earnings profiles when migrations are temporary," Labour Economics, Elsevier, vol. 41(C), pages 1-8.
    3. Casey Warman & Matthew D. Webb & Christopher Worswick, 2019. "Immigrant category of admission and the earnings of adults and children: how far does the apple fall?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(1), pages 53-112, January.
    4. David A. Green & Christopher Worswick, 2017. "Canadian economics research on immigration through the lens of theories of justice," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1262-1303, December.
    5. Dostie, Benoit & Li, Jiang & Card, David & Parent, Daniel, 2020. "Employer Policies and the Immigrant-Native Earnings Gap," IZA Discussion Papers 13245, Institute of Labor Economics (IZA).
    6. Haozhen Zhang & Jianwei Zhong & Cédric de Chardon, 2020. "Immigrants’ net direct fiscal contribution: How does it change over their lifetime?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1642-1662, November.
    7. Neeraj Kaushal & Yao Lu & Nicole Denier & Julia Shu-Huah Wang & Stephen J. Trejo, 2016. "Immigrant employment and earnings growth in Canada and the USA: evidence from longitudinal data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1249-1277, October.
    8. Arthur Sweetman & Casey Warman, 2013. "Canada's Immigration Selection System and Labour Market Outcomes," Canadian Public Policy, University of Toronto Press, vol. 39(s1), pages 141-160, May.
    9. 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.
    10. Manish Pandey & James Townsend, 2017. "Prior host-country work experience and immigrant labor market outcomes: evidence from Canada," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-22, December.
    11. 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.
    12. Michele Campolieti & Morley Gunderson & Olga Timofeeva & Evguenia Tsiroulnitchenko, 2013. "Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?," Journal of Labor Research, Springer, vol. 34(4), pages 455-475, December.
    13. Ana Damas de Matos, 2017. "Firm heterogeneity and immigrant wage assimilation," Applied Economics Letters, Taylor & Francis Journals, vol. 24(9), pages 653-657, May.

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    More about this item

    Keywords

    Immigration; assimilation; longitudinal data; selection bias;
    All these keywords.

    JEL classification:

    • 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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