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Which Human Capital Characteristics Best Predict the Earnings of Economic Immigrants?

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  • Hou, Feng
  • Picot, Garnett
  • Bonikowska, Aneta

Abstract

While an extensive literature examines the association between immigrants' characteristics and their earnings in Canada, there is a lack of knowledge regarding the relative importance of various human capital factors, such as language, work experience and education when predicting the earnings of economic immigrants. The decline in immigrant earnings since the 1980s, which was concentrated among economic immigrants, promoted changes to the points system in the early 1990s and in 2002, in large part, to improve immigrant earnings. Knowledge of the relative role of various characteristics in determining immigrant earnings is important when making such changes. This paper addresses two questions. First, what is the relative importance of observable human capital factors when predicting earnings of economic immigrants (principal applicants), who are selected by the points system? Second, does the relative importance of these factors vary in the short, intermediate, and long terms? This research employs Statistics Canada's Longitudinal Immigration Database (IMDB).

Suggested Citation

  • Hou, Feng & Picot, Garnett & Bonikowska, Aneta, 2015. "Which Human Capital Characteristics Best Predict the Earnings of Economic Immigrants?," Analytical Studies Branch Research Paper Series 2015368e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2015368e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2015368
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    Citations

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    Cited by:

    1. Valerie Preston & John Shields & Marshia Akbar, 2022. "Migration and Resilience in Urban Canada: Why Social Resilience, Why Now?," Journal of International Migration and Integration, Springer, vol. 23(3), pages 1421-1441, September.
    2. Feng Hou & Yuqian Lu, 2017. "International students, immigration and earnings growth: the effect of a pre-immigration host-country university education," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-24, December.
    3. Dostie, Benoit & Li, Jiang & Card, David & Parent, Daniel, 2023. "Employer policies and the immigrant–native earnings gap," Journal of Econometrics, Elsevier, vol. 233(2), pages 544-567.
    4. Laura Monteiro & Michael Haan, 2022. "The Life Satisfaction of Immigrants in Canada: Does Time Since Arrival Matter more than Income?," Journal of International Migration and Integration, Springer, vol. 23(3), pages 1397-1420, September.
    5. Mikal Skuterud & Zong Jia Chen, 2018. "Comparing Outcomes: The Relative Job-Market Performance of Former International Students," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 518, August.
    6. Chen, Zong Jia & Skuterud, Mikal, 2017. "The Relative Labour Market Performance of Former International Students: Evidence from the Canadian National Graduates Survey," IZA Discussion Papers 10699, Institute of Labor Economics (IZA).
    7. 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.
    8. Chen, Zong Jia & Skuterud, Mikal, 2017. "The relative labour market performance of former international students: Evidence from the Canadian National Graduates Survey," CLEF Working Paper Series 11, Canadian Labour Economics Forum (CLEF), University of Waterloo.

    More about this item

    Keywords

    Education; training and learning; Ethnic diversity and immigration; Labour; Labour market and income; Wages; salaries and other earnings;
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