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Immigrant employment and earnings growth in Canada and the USA: Evidence from longitudinal data

TitleImmigrant employment and earnings growth in Canada and the USA: Evidence from longitudinal data
Year of Publication2016
AuthorsKaushal, N., Lu Y., Denier N., Wang J. Shu- Huah, and Trejo S. J.
JournalJournal of Population Economics
Volume29
Pages1249 - 1277
Keywordscanadian immigrants, comparative study, economic assimilation, employment wages, immigration, longitudinal data, us immigrants
Abstract

We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the USA using nationally representative longitudinal datasets covering 1996-2008. Models with person fixed effects show that, on average, immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the USA, on the other hand, experience positive annual growth in all three domains relative to US-born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the USA than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

URLhttps://link.springer.com/article/10.1007/s00148-016-0600-5
DOI10.1007/s00148-016-0600-5