Explaining the Deteriorating Entry Earnings of Canada’s Immigrant
The study explores causes of the deterioration in entry earnings of Canadian immigrant cohorts by estimating an empirical specification that nests a number of competing explanations found in the Canadian literature. To do this, we use the pooled sample of Canadian-born and immigrant men employed full-year, full-time from the complete 20 percent samples of the 1981, 1986, 1991, 1996 and 2001 Canadian Censuses. Our results indicate that no more than one-third of the deterioration can be explained by compositional shifts in the knowledge of an official language, mother tongue and region of origin of recent immigrant cohorts. We also find little or no evidence that declining returns to foreign education are responsible. Roughly one-third of the deterioration appears to be due to a persistent decline in the returns to foreign labour market experience which has occurred almost exclusively among immigrants originating from non-traditional source countries. We are able to explain two-thirds of the overall decline in the entry earnings of Canada’s most recent immigrants without any reference to entry labour market conditions. When we also account for entry conditions, our results suggest that Canada’s immigrants who arrived in the 1995-1999 period would otherwise be enjoying entry earnings that were significantly higher than the entry earnings of the 1965-1969 cohort.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Beaudry & David A. Green, 2000.
"Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 33(4), pages 907-936, November.
- Paul Beaudry & David Green, 1997. "Cohort Patterns in Canadian Earnings: Assessing the Role of Skill Premia in Inequality Trends," NBER Working Papers 6132, National Bureau of Economic Research, Inc.
- Green, David A. & Worswick, Christopher, 2012.
"Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects,"
Elsevier, vol. 19(2), pages 241-259.
- David A. Green & Christopher Worswick, 2004. "Immigrant earnings profiles in the presence of human capital investment: measuring cohort and macro effects," IFS Working Papers W04/13, Institute for Fiscal Studies.
- Kee, Peter, 1995. "Native-Immigrant Wage Differentials in the Netherlands: Discrimination?," Oxford Economic Papers, Oxford University Press, vol. 47(2), pages 302-17, April.
- Robert F. Schoeni, 1998. "Labor market assimilation of immigrant women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 483-504, April.
- Rachel M. Friedberg, 1996.
"You Can't Take It With You? Immigrant Assimilation and the Portability of Human Capital,"
NBER Working Papers
5837, National Bureau of Economic Research, Inc.
- Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-51, April.
- Bloom, D. & Grenier, G. & Gunderson, M., 1993.
"The Changing Labour Market Position of Canadian Immigrants,"
9305e, University of Ottawa, Department of Economics.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1994. "The Changing Labor Market Position of Canadian Immigrants," NBER Working Papers 4672, National Bureau of Economic Research, Inc.
- Abdurrahman Aydemir, 2003. "Effects of Business Cycles on Labour Market Assimilation of Immigrants," Labor and Demography 0309010, EconWPA.
- Sherrie A. Kossoudji, 1989. "Immigrant Worker Assimilation: Is It a Labor Market Phenomenon?," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 494-527.
- 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.
- Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
- Morissette, Rene & Frenette, Marc, 2003. "Will They Ever Converge? Earnings of Immigrants and Canadian-born Workers over the Last Two Decades," Analytical Studies Branch Research Paper Series 2003215e, Statistics Canada, Analytical Studies Branch.
- Chiswick, Barry R & Miller, Paul W, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 540-53, June.
- 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.
- Aydemir, Abdurrahman, 2003. "Effects of Business Cycles on the Labour Market Assimilation of Immigrants," Analytical Studies Branch Research Paper Series 2003203e, Statistics Canada, Analytical Studies Branch.
- Ana Ferrer & W. Craig Riddell, 2008. "Education, credentials, and immigrant earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 186-216, February.
- Harriet Duleep & Mark Regets, 1997. "Measuring immigrant wage growth using matched CPS files," Demography, Springer, vol. 34(2), pages 239-249, May.
- Antecol, Heather & Kuhn, Peter J. & Trejo, Stephen, 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA).
- 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.
- Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpla:0409006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.