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The economics of Canadian immigration levels

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  • Doyle, Matthew
  • Skuterud, Mikal
  • Worswick, Christopher

Abstract

In the hope of addressing chronic labour shortages and sluggish economic growth, the Canadian government plans to increase immigration in the coming years to per capita levels not reached since the 1920s. We argue that economic immigration in the Canadian context should aim to boost GDP per capita in the full population including the newcomers. We then examine the potential for increases in Canadian immigration levels to achieve this objective. Our analysis suggests that Canada is not well-positioned to leverage heightened immigration to boost GDP per capita owing primarily to weak capital investment and quantity-quality tradeoffs in immigrant selection. We conclude by providing a framework for identifying the optimal level of economic immigration.

Suggested Citation

  • Doyle, Matthew & Skuterud, Mikal & Worswick, Christopher, 2023. "The economics of Canadian immigration levels," CLEF Working Paper Series 58, Canadian Labour Economics Forum (CLEF), University of Waterloo.
  • Handle: RePEc:zbw:clefwp:58
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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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