The Human Capital Model of Selection and Immigrant Economic Outcomes

This article examines the trends in the economic advantage that highly educated immigrants hold over less educated immigrants in Canada, focusing on the differences between short‐run and longer‐run outcomes. Using data from the Longitudinal Immigration Database covering the period from the 1980s to the 2000s, this study finds that the relative entry earnings advantage that higher education provides to new immigrants has decreased dramatically over the last 30 years. However, university‐educated immigrants had a much steeper earnings trajectory than immigrants with trades or a high school education. The earnings advantage among highly educated immigrants increases significantly with time spent in Canada. This pattern is observed for virtually all immigrant classes and arrival cohorts. The results suggest that short‐run economic outcomes of immigrants are not good predictors of longer‐run results, at least by educational attainment. The implications of these findings for immigration selection policy are discussed in the conclusion.     

Recent Immigration to Canada and the United States: A Mixed Tale of Relative Selection

Using large‐scale census data and adjusting for sending‐country fixed effect to account for changing composition of immigrants, we study relative immigrant selection to Canada and the U.S. during 1990–2006, a period characterized by diverging immigration policies in the two countries. Results show a gradual change in selection patterns in educational attainment and host‐country language proficiency in favor of Canada as its post‐1990 immigration policy allocated more points to the human capital of new entrants. Specifically, in 1990, new immigrants in Canada were less likely to have a B.A. degree than those in the U.S.; they were also less likely to have a highschool or lower education. By 2006, Canada surpassed the U.S. in drawing highly educated immigrants, while continuing to attract fewer low‐educated immigrants. Canada also improved its edge over the U.S. in terms of host‐country language proficiency of new immigrants. Entry‐level earnings, however, do not reflect the same trend: Recent immigrants to Canada have experienced a wage disadvantage compared to recent immigrants to the U.S., as well as Canadian natives. One plausible explanation is that while the Canadian points system has successfully attracted more educated immigrants, it may not be effective in capturing productivity‐related traits that are not easily measurable.     

Physician-nurse migration to the United States: regional and health status origins in relation to legislation and policy

This article examines the origins of physicians and nurses who were admitted as permanent immigrants to the US from 1962-1979. Data are mainly from the Immigration and Naturalization Service. Countries used in the developmental analysis are only those whose population was estimated at 1 million or more as of mid-1979, encompassing 99% of the physicians and 97% of the nurses. Life expectancy at birth is the criterion used to differentiate origin countries by developmental dimension of health status. During the study period, health workers constituted about 30% of immigrants admitted to the US; of these, nurses and physicians constituted 72-82% throughout the study period. The period 1962-1979 has 4 distinct phases, marked by important legislative and/or policy changes; 1) 1962-1965, when the McCarran-Walter Act prevailed; 2) ending in 1968, the 2nd phase covers the transition mandated under the 1965 Immigration Act, which encouraged physician immigration; 3) the 3rd phase, 1969-1976, covers the transition to the 1976 Immigration and Nationality Act amendments; and 4) the 4th stage is 1977-1979. Results show that 1) under the McCarran-Walter Act, North America became the dominant physician source; 2) from 1966-1968, Asia attained dominance as the physician source and became even more predominant after 1968; 3) North America produced relatively few physicians in the early 1970s; 4) Europe produced substantially fewer physicians in the 1970s than in the 1960s; 5) South America, Africa, and Oceania were the lowest contributors of physicians; 6) during the McCarran-Walter years, North America and Europe produced almost 90% of nurses admitted into the US; 7) the 1965 Immigration Act and its aftermath resulted in Asia becoming the dominant source of nurses; 8) prior to the 1965 Immigration Act, Canada generated 20% of the aggregate number of physicians; 9) the Philippines surpassed Canada during the transition and India led after the transition; and 10) Canada supplied 30% of the nurses up through the transition, with the Philippines in the lead 1969-1979. Low health status countries were a relatively minor nurse source. Health status at the origin was a far less significant determinant of physician immigration than that of nurses. English language high and low health status country groups produced substantially more physician and nurse immigrants that their corresponding non-English language counterparts. The US attracted more physicians and nurses from less developed countries than more developed countries after 1968.     

The unemployment insurance compensation. Usage of Canada's immigrants in selected provinces, 1981-1988

This paper explores the relationship between province of residence and the use of unemployment insurance (UI) among immigrants who landed in Canada during the period 1981-88.
Use of a new data set, the Longitudinal Immigration Data Base, overcomes the restriction that other data sets are cross-sectional only in nature or do not identify birthplace.
Our principal conclusion is that more generous UI benefits and poorer economic conditions than the Canadian average have a positive impact on the fraction of immigrants who receive UI. In addition, the province of residence has a separate effect on the likelihood of claiming UI, perhaps due to mobility costs.
Because national immigration policies have a differential impact across provinces, it is understandable that provincial policy makers wish to have greater influence over federal immigration policies.     

Settlement assistance and intermarriage for immigrants to Canada

Canada initiated a points‐based admission system in 1967 to select immigrants, regardless of racial or ethnic origin, who were most likely to prosper economically and assimilate into the host society. If the points‐based admission system achieved its goal of selecting ‘assimilable ‘ immigrants, those persons admitted under the policy should be just as likely to marry outside of their nationality group as within it. Using data from the Longitudinal Study of Economic and Social Adaptation of Immigrants to Life in Canada, multinomial logistic regression models of spousal choice were estimated for the 3,984 respondents who were single upon arrival in Canada. Nominated immigrants (those persons admitted with promises of settlement assistance) were found to have greater odds of intramarriage than independent immigrants.     

Immigrants and ‘New Poverty’: The Case of Canada1

Studies of the economic status of recent immigrants to the United States have questioned the generalizability of some earlier findings based on assimilation theory. In Canada, however, little research has been done on this issue, and that has left mixed results. The present study attempts to address the economic performance of immigrants in Canada through an examination of their poverty status. This is particularly important now because, since the late 1980s, many industrial nations including Canada have been subjected to an unexpected surge of poverty known as ‘new poverty.’ The findings indicate that immigrants in Canada are consistently overrepresented among the poor; that their poverty rates are particularly high in larger cities, which have larger concentrations of immigrants; and that among immigrants, the poverty rates are higher for visible minorities, who are mostly recent immigrants. One particularly surprising finding was that the second‐generation immigrants, who were expected to outperform their parents, had higher poverty rates. A series of logistic regression models are developed to shed some light on the possible reasons behind these trends. Of the three sets of potential contributors – human capital, assimilation and structural factors – the first two were found more relevant. The models also revealed that the human capital factors were less rewarding for immigrants than natives.     

Institutional Structure and Immigrant Integration: A Comparative Study of Immigrants' Labor Market Attainment in Canada and Israel1

The present study focuses on the incorporation of immigrants from the former Soviet Union in two receiving societies, Israel and Canada, during the first half of the 1990s. Both countries conducted national censuses in 1995 (Israel) and 1996 (Canada), making it possible to identify a large enough sample of immigrants and provide information on their demographic characteristics and their labor market activity. While both Canada and Israel are immigrant societies, their institutional contexts of immigrant reception differ considerably. Israel maintains no economic selection of the Jewish immigrants and provides substantial support for newcomers, who are viewed as a returning Diaspora. Canada employs multiple criteria for selecting immigrants, and the immigrants' social and economic incorporation is patterned primarily by market forces. The analysis first examines the characteristics of immigrants who arrived in the two countries and evaluates the extent of selectivity. Consistent with our hypotheses, Russian immigrants to Canada were more immediately suitable for the labor market, but experienced greater difficulty finding and maintaining employment. Nevertheless, immigrants to Canada attained higher‐status occupations and higher earnings than their compatriots in Israel did, although the Israeli labor market was more likely to reward their investments in education.     

Immigrant Employment Success in Canada: Examining the Rate of Obtaining a Job Match

This study employs longitudinal data to examine the rate at which recent immigrants to Canada obtain employment matching their previous or intended occupations. Socio‐demographic factors such as visible minority status and area of residence are found to influence the rate at which this cohort of immigrants obtains job matches. Human capital factors also have a significant impact. An examination of occupational characteristics reveals that immigrants who seek high‐status occupations obtain job matches at slower rates than those seeking lower‐status occupations.     

Brazilian Immigration to Ontario

Immigration to Canada from non-traditional donor nations has increased in recent years and is likely to continue to increase in the long-term. This article examines one flow of "new" immigrants: from Brazil to Toronto, Ontario. Their adaptation experiences are analysed from primary data collected from 205 Brazilians interviewed during 1991.
A large proportion of the immigrants who arrived after 1987, the year a visa requirement was initiated for Brazilians, gained entry by claiming to be "refugees". Because of numerous court system delays, this strategy permitted them to work, study and collect social benefits until all their appeals, no matter how spurious, were exhausted. Meantime, many acquired English skills and on-the-job training which enabled them to score high enough on the Canadian immigrant point scale to become legal permanent residents.
Results also demonstrate that immigrants from Brazil are relatively well educated and highly motivated to succeed. Although the group included some target earners who will return to Brazil, many have become well integrated into Canadian society and desire to remain permanently.     

Geographically indirect immigration to Canada: description and analysis

"This article is concerned with geographically indirect immigration to Canada over the period 1968-1988. A geographically indirect immigrant is an individual legally admitted to Canada whose country of last permanent residence differs from country of birth. Records maintained by Employment and Immigration Canada on every immigrant legally admitted over the period were used in the study. Relative to geographically direct immigrants, geographically indirect immigrants tend to be older, more educated, and more highly skilled. Moreover, if they were not born in an English or French speaking country, indirect immigrants are more likely to speak English and/or French capably than direct migrants born in such countries. The study also contains bivariate logit estimates of a model of geographically indirect Canadian immigration. This model suggests that indirect migrants tend to be influenced by personal characteristics (age, sex, marital status, occupation, language ability), as well as by various characteristics of the country of birth (distance from Canada, income level, political conditions)."     

Labour Market Limbo: The Uneven Integration of Co‐Ethnic Argentine Immigrants in Spain

Immigration and citizenship laws that discriminate by race, ethnicity, and national origins are increasingly illegitimate in contemporary democracies, yet laws that grant privileged access and membership to immigrants who share natives' ethnicity persist. This enduring positive selection rests upon the assumption that co‐ethnicity fosters integration. Countering this logic, this article centers on co‐ethnics' insertion into local labour markets. It draws from a case study of Aguaviva, Spain, a depopulating village in which both co‐ethnic Argentines and Romanian immigrants reside. The analysis qualifies the trend of deracialization in immigration and citizenship policy and shows that positive preferences do not uniformly foster integration. In dual labour market systems, co‐ethnics struggle because they are not different enough for secondary sector jobs reserved for immigrant “others,” yet in the primary sector they enter into direct competition with natives.     

Immigrants working with co‐ethnics: Who are they and how do they fare?

Participation in ethnic economies has been regarded as an alternative avenue of economic adaptation for immigrants and minorities in major immigrant‐receiving countries. This study examines one important dimension of ethnic economies: co‐ethnic concentration at the workplace. Using a large national representative sample from Statistics Canada’s 2002 Ethnic Diversity Survey, this study addresses four questions: (1) what is the level of co‐ethnic concentration at the workplace for Canada’s minority groups? (2) How do workers who share the same ethnicity with most of their co‐workers differ from other workers in socio‐demographic characteristics? (3) Is higher level of co‐ethnic concentration at the workplace associated with lower earnings? (4) Is higher level of co‐ethnic concentration at the workplace associated with higher levels of life satisfaction? The results show that only a small proportion of immigrants and the Canadian‐born work in ethnically homogeneous settings. In Canada’s eight largest metropolitan areas about 10 per cent of non‐British/French immigrants share a same ethnic origin with the majority of their co‐workers. The level is as high as 20 per cent among Chinese immigrants and 18 per cent among Portuguese immigrants. Among Canadian‐born minority groups, the level of co‐ethnic workplace concentration is about half the level for immigrants. Immigrant workers in ethnically concentrated settings have much lower educational levels and proficiency in English/French. Immigrant men who work mostly with co‐ethnics on average earn about 33 per cent less than workers with few or none co‐ethnic coworkers. About two thirds of this gap is attributable to differences in demographic and job characteristics. Meanwhile, immigrant workers in ethnically homogenous settings are less likely to report low levels of life satisfaction than other immigrant workers. Among the Canadian‐born, co‐ethnic concentration is not consistently associated with earnings and life satisfaction.     

Occupational status and mobility among undocumented immigrants by gender

Immigration has long been a national and state concern. The 1989 Legalized Population Survey (LPS-1) collected data on illegal immigrants to the US who subsequently became legalized aliens under the provisions of the 1986 Immigration Reform and Control Act. These data are used in a study assessing whether undocumented male and female immigrants improve their earnings and occupational status over time and the extent of variation in occupational status and mobility by gender and region. The data indicate that both undocumented men and women, on average, improved their earnings and occupational status between their first jobs in the US and their jobs just before applying for legalization under the 1986 Immigration Reform and Control Act. However, the earnings, occupational status, and occupational mobility of men were greater than for women.     

Which Child Immigrants Face Earnings Disparity? Age‐at‐immigration,Ethnic Minority Status and Labour Market Attainment in Canada

Using Canadian Census microdata from 1990 to 2005, we investigate the earnings attainment of immigrants to Canada in 6 age‐at‐arrival cohorts. In comparison to past work we extend our understanding regarding three dimensions of the age at immigration debate: we explore heterogeneity across fine grained age‐at‐arrival cohorts, over a fifteen‐year period and across different ethnic groups. We find that white immigrants and female immigrants arriving in Canada prior to age 18 face little earnings disparity. In contrast, visible minority male immigrants face significant earnings disparity regardless of their age‐at‐migration, and additionally this disparity increases sharply with age‐at‐migration. We find a break in earnings attainment at an age‐of‐arrival of 17, with immigrants arriving after this age performing much worse than those arriving at this age or earlier. The patterns observed are found for visible minority immigrants as a whole, and for Chinese, South Asian and African/Black origin immigrants examined separately.     

Earning Gaps for Chinese Immigrants in Canada and the United States

This study compares the US and Canada on the gap in earnings between Chinese immigrants and native‐born whites. Canada and the US are arguably more alike than most possible country pairings, yet they differ in significant ways in their approaches to immigration and integration. The primary difference between Canada and the US regarding immigration policy is that Canada selects a larger proportion of economic immigrants – that is, those admitted based on their ability to contribute to the economy – than the US's focus on family reunification. Canadian immigration and multicultural integration policy does not appear to improve Chinese immigrant earnings in the way that might be predicted from Canada's skilled‐based immigrant selection policy and welcoming social context. In spite of a more laissez‐faire approach to immigrant integration and a less skill‐selective immigration policy, we show that Chinese immigrants are earning relatively more in the US than in Canada.     

Onward Emigration to the United States by Canadian Immigrants between 1995 and 20001

Using data drawn from the 2000 US and the 2001 Canadian Censuses, this paper analyzes the onward emigration of Canadian immigrants to the US between 1995 and 2000. The characteristics of an estimated 48,336 Canadian immigrants who made an onward emigration from Canada to the United States are examined. This paper also seeks to determine whether onward foreign‐born emigrants are representative of immigrants in Canada and Canadian‐born emigrants to the US. Results indicate that onward emigrants are primarily young, married, possess a bachelor's degree, earn incomes of $100,000 US or greater, and reside in large immigrant‐receiving states and metropolitan areas.     

The Canada-United States joint immigration study: issues in data comparability

The Canada-US immigration project is an attempt to assess carefully the flows, trends, and characteristics of immigrants between the 2 countries. The primary focus for data is the census information derived from the 1980 US and 1981 Canadian censuses. Some observations of the comparison follow. 1) US-born immigrants tend to migrate later. 2) Immigrants have an older age structure than the total population. 3) The sex ratio pattern is similar with older migrants having lower ratios. 4) Immigration of elderly/retired is not a common pattern. 5) Changes in regional destinations is a basic feature of immigration flows. The destination of US immigrants shifted over time from northern states to southern states. Destinations of Canadian immigrants shifted over time from Quebec and prairie provinces to Ontario and British Columbia. 6) A higher proportion of US immigrants ever married and were widowed; higher proportions of Canadian immigrants divorced, and lower proportions separated. These aspects reflect age structure. 7) US immigrants' fertility is similar to the US population in general; Canadian immigrants' fertility is similar to the Canadian population in general. 8) US immigrants born in Canada have a considerably higher attainment. 9) Males aged 16-64 among US immigrants born in Canada have a consistently higher labor force participation rate. 10) Professional specialty occupations increase in importance in the 1975-1980 period in both countries. 11) Incomes of recent immigrants who were full-time, year-round workers from Canada or the US were well above the incomes of the native populations of either country. Comparability had to be examined in light of the variations built into the 2 censuses. Some of these issues are: 1) differences in sampling and collection methods, 2) differences in under/over-enumeration, 3) misreporting of country of birth, 4) differences in questions used, 5) different editing and imputation procedures applied, 6) variations in residence rules, and 7) the exclusion or inclusion of certain groups in the national census counts.     

Impact of Canadian Postsecondary Education on Occupational Prestige of Highly Educated Immigrants

Cet article utilise les données provenant de l'Enquête longitudinale auprès des immigrants du Canada (ELIC) couvrant la période 2000‐2004 afin d'évaluer l'emploi à durée déterminée et la réussite professionnelle des immigrants récents qui, bien qu'ayant obtenu un diplôme universitaire dans leur pays d'origine, ont choisi de s'inscrire dans un établissement d'enseignement postsecondaire canadien. La principale conclusion de l'article est que la réussite professionnelle des immigrants très instruits est affectée par le choix de l'enseignement post‐secondaire au Canada, toutes catégories socio‐démographiques et conditions d'avant ou après migration confondues. Quatre années après leur arrivée au Canada, les immigrants occupent des emplois nettement moins prestigieux que ceux qu'ils avaient avant la migration. Les immigrants qui ont poursuivi des études universitaires au Canada atteignent des meilleurs résultats professionnels que les non‐participants ou ceux qui ont choisi un collège communautaire. Néanmoins, la majorité des immigrants très instruits n'ont pas réussi à retrouver leur profession. This paper uses data from the Longitudinal Survey of Immigrants to Canada covering the period 2000 to 2004 to assess short‐term employment and occupational attainment of recent immigrants who, despite having completed a university degree in their countries of origin, chose to obtain additional credentials at a Canadian postsecondary institution. The main finding of this paper is that occupational attainment of highly educated immigrants is affected by choice of postsecondary education in Canada regardless of differences in sociodemographic, premigration characteristics, and postmigration conditions. Four years after entry, immigrants worked in jobs with significantly lower occupational prestige than those held prior to migration. Immigrants who pursued a university education in Canada attained highest occupational outcomes when compared to nonparticipants and those who chose a community college pathway. Nevertheless, the majority of highly educated immigrants failed to gain entry to the professions.     

Understanding the Socioeconomic Status of International Immigrants in Chile Through Hierarchical Cluster Analysis: a Population‐Based Study

Immigration to Chile is not large (just under 2% of the total population) but has increased in recent years. This study aimed to analyse the socioeconomic status (SES) of immigrants in Chile and compare it with the Chilean‐born, by secondary data analysis of an anonymous nationally representative survey (CASEN, 2006). Immigrants are categorized into Low, Medium and High SES through hierarchical cluster analysis. Around 1 per cent of the total sample are international immigrants; an additional 0.7 per cent did not report their migration status. Self‐reported immigrants show great variability in their SES. Immigrants in the Low SES cluster appeared to be significantly younger than those in Medium and High SES, also more likely to be children, women and belong to an ethnic minority. Immigrants in the Low SES cluster appeared similar to the unemployed, poorest Chilean‐born but are more than eight years younger on average and more likely to be female. Immigrants to Chile are a unique group, with socio‐demographic characteristics that differ significantly from the Chilean‐born population, but there is great heterogeneity and complexity within this group. Cluster analysis provided a meaningful interpretation of the multidimensional concept of SES and allowed the identification of a vulnerable group of Low SES immigrants to Chile.