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Effects of Business Cycles on Labour Market Assimilation of Immigrants

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  • Abdurrahman Aydemir

    (Family & Labour Studies Division, Statistics Canada)

Abstract

This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies the separate effects of macro conditions at the time of entry to the labour market and at the time of the survey, while allowing for cohort effects. Also, for the first time in literature the impacts on labour force participation along with employment outcomes are explored. The study uses 19 annual cross-sections of the Survey of Consumer Finances covering the period 1979 to 1997. The results suggest that the deterioration in the assimilation of recent immigrants is partly due to the adverse economic conditions they face in the year they enter the labour market and subsequently. Macroeconomic conditions at the time of labour market entry have adverse impacts on both labour force participation and employment. With the inclusion of controls for macro conditions, the significance and magnitude of the coefficient measuring assimilation increases. Therefore, not only the estimated cohort effects bur also the assimilation profiles are sensitive to the inclusion of controls for business cycles.

Suggested Citation

  • Abdurrahman Aydemir, 2003. "Effects of Business Cycles on Labour Market Assimilation of Immigrants," Labor and Demography 0309009, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0309009
    Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP; pages: 42; figures: included
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    References listed on IDEAS

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    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. Philip M. Bodman & Mark Crosby, 2000. "Phases of the Canadian business cycle," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 618-633, August.
    3. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December.
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    Cited by:

    1. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    2. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 – 2000," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 641-672, May.
    3. Abdurrahman Aydemir, 2013. "Skill-based immigrant selection and labor market outcomes by visa category," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 23, pages 432-452, Edward Elgar Publishing.
    4. Parvinder Hira-Friesen, 2018. "Immigrants and Precarious Work in Canada: Trends, 2006–2012," Journal of International Migration and Integration, Springer, vol. 19(1), pages 35-57, February.
    5. Andrew Clarke & Ana Ferrer & Mikal Skuterud, 2019. "A Comparative Analysis of the Labor Market Performance of University-Educated Immigrants in Australia, Canada, and the United States: Does Policy Matter?," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 443-490.
    6. Marie-Pier Joly, 2019. "The Employment and Occupational Status of Migrants from Countries Experiencing Armed Conflict," Journal of International Migration and Integration, Springer, vol. 20(4), pages 1071-1095, November.
    7. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    8. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, University Library of Munich, Germany.
    9. Huanan Xu, 2018. "First fired, first hired? Business cycles and immigrant labor market transitions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-36, December.
    10. Waad K. Ali & K. Bruce Newbold, 2020. "Geographic variations in precarious employment outcomes between immigrant and Canadian‐born populations," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1185-1213, October.
    11. Ana Ferrer & Mikal Skuterud & Andrew Clarke, 2018. "A Comparative Analysis of the Labour Market Performance of University-Educated Immigrants in Australia, Canada, and the United States," Working Papers 1807, University of Waterloo, Department of Economics, revised 02 Jan 2018.
    12. Girard, Magali & Smith, Michael, 2009. "Working In a Regulated Occupation in Canada: An Immigrant - Native-Born Comparison," CLSSRN working papers clsrn_admin-2009-53, Vancouver School of Economics, revised 24 Oct 2009.
    13. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.
    15. Picot, Garnett & Sweetman, Arthur, 2011. "Canadian Immigration Policy and Immigrant Economic Outcomes: Why the Differences in Outcomes between Sweden and Canada?," IZA Policy Papers 25, Institute of Labor Economics (IZA).
    16. Javdani, Mohsen & McGee, Andrew, 2013. "Intra-Firm Upward Mobility and Immigration," IZA Discussion Papers 7378, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Immigration; business cycle; cohort effects; economic assimilation; labour force participation; employment;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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