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Effects of Business Cycles on Labour Market Assimilation of Immigrants

Author

Listed:
  • Abdurrahman Aydemir

    (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 0309010, EconWPA.
  • Handle: RePEc:wpa:wuwpla:0309010
    Note: Type of Document - Acrobat PDF; prepared on IBM PC ; to print on HP; pages: 42; figures: included. 42 pages pdf
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    File URL: http://econwpa.repec.org/eps/lab/papers/0309/0309010.pdf
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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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
    2. Abdurrahman Aydemir, 2013. "Skill-based immigrant selection and labor market outcomes by visa category," Chapters,in: International Handbook on the Economics of Migration, chapter 23, pages 432-452 Edward Elgar Publishing.
    3. 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.
    4. 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.
    5. 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 for the Study of Labor (IZA).
    6. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, EconWPA.

    More about this item

    Keywords

    Immigration; business cycle; cohort effects; economic assimilation; labour force participation; employment;

    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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