The labour market experiences of Canadian immigrants

The economic adaptation of immigrants to Canada is analyzed using government data on the labor force and landed immigrants. In particular, the labor force experience of a sample of immigrants in Canada is examined and compared with that of a Canadian cohort with regard to length of unemployment and income. "Differences in unemployment and insurable earnings are examined by age, sex, immigrant category..., world area of last permanent residence, official language abilities, education, and region of residence." (summary in FRE, SPA)     

‘Survival Employment’: Gender and Deskilling among African Immigrants in Canada

Recent research points to a growing gap between immigrant and native‐born outcomes in the Canadian labour market at the same time as selection processes emphasize recruiting highly educated newcomers. Drawing on interviews with well‐educated men and women who migrated from countries in sub‐Saharan Africa, this paper explores the gendered processes that produce weak economic integration in Canada. Three‐quarters of research participants experienced downward occupational mobility, with the majority employed in low‐skilled, low‐wage, insecure forms of “survival employment”. In a gendered labour market, where common demands for “Canadian experience”, “Canadian credentials” and “Canadian accents” were uneven across different sectors of the labour market, women faced particular difficulties finding “survival employment”; in the long run, however, women’s greater investment in additional post‐secondary education within Canada placed them in a somewhat better position than men. The policy implications of this study are fourfold: first, we raise questions about the efficacy of Canadian immigration policies that prioritize the recruitment of well‐educated immigrants without addressing the multiple barriers that result in deskillling; second, we question government policies and settlement practices that undermine more equitable economic integration of immigrants; third, we address the importance of tackling the “everyday racism” that immigrants experience in the Canadian labour market; and finally, we suggest the need to re‐think narrowly defined notions of economic integration in light of the gendered nature of contemporary labour markets, and immigrants’ own definitions of what constitutes meaningful integration.     

Economic adaptation of refugees in Canada: experience of a quarter century

This paper examines the economic adaptation, in terms of employment and income, for 400,000 refugees, mainly displaced persons, Hungarians, Czechoslovaks, Ugandan Asians, Chileans, and Indochinese, in Canada during the last 25 years. The author looks at 1) east in obtaining a first job, 2) unemployment, 3) wives' employment, 4) job search techniques, and 5) occupation. Economic climate largely determines the time needed to find a first job. 55% of Hungarian refugees in 1957-58 found a job within a month; only 30% of Czechoslovak refugees in 1968-69 found a job within a month. Refugees and regular immigrants have higher unemployment than native Canadians; but the rate drops dramatically within a few years. Employment and unemployment for refugees is influenced by 1) prevailing labor market conditions, 2) English and/or French language proficiency, 3) sympathy by the population for the refugees, 4) support by people of the same ethnic group, and 5) the refugees' own adaptability. Survey results show that more refugee wives are employed than Canadian born wives; over 69% of Chilean refugee women worked in 1975-76. Most refugees use the Canada Employment Center, and informal channels such as "word of mouth" and friends and relatives to find jobs. Lack of qualifications and experience, and lack of language proficiency hinder many refugees in finding jobs for which they have trained. Income is an indicator of the success of refugee economic adaptation. Refugees, like regular immigrants, have lower than average income levels in their first years in Canada; however, they often earn more than the Canadian born after the difficult first years. Family incomes, because of female labor force participation, may widen the differences even more. Although many refugees are not working in their intended professions, most refugee groups have adjusted well economically in Canada.     

Explaining Attitudes towards Self-employment among Immigrants: A Canadian Case Study

Implicit in Canada's immigration policies is that some immigrants are endowed with a particular entrepreneurial spirit, and that this spirit relates to immigrants’ origin. This paper examines whether attitudes towards entrepreneurship indeed relate to origin, or whether they can be explained through labour market circumstances at the place of settlement and/or Canada's immigrant selection procedure. The empirical study focuses on the reported attitudes towards entrepreneurship. A survey of 509 Vancouver residents of a predominantly Chinese immigrant neighbourhood, a predominantly South Asian immigrant neighbourhood, and a neighbourhood of non‐immigrants reveals that ethnic origin is a weak indicator of entrepreneurial attitudes. Instead, urban or rural background emerges as a more powerful predictor. The results also raise doubts about whether the Canadian government's immigration policy, which selects immigrants on the basis of economic potential, indeed selects immigrants with a greater desire to become self‐employed. Furthermore, the amount of time immigrants have spent in Canada does not significantly affect attitudes towards entrepreneurship.     

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.     

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.     

DO UNEMPLOYMENT BENEFITS AFFECT ON‐THE‐JOB SEARCH? EVIDENCE FROM LABOR TURNOVER BEFORE ESTABLISHMENT CLOSURES

We develop a job search model that predicts that potential job losers would reduce on‐the‐job search (OTJS) effort and job‐to‐job transitions before layoffs, in response to an increase in the potential duration of unemployment benefits (UB). To test this prediction, we exploit changes in the maximum potential duration of benefits in Germany to analyze how it affected labor turnover before establishment closings. The evidence supports the model prediction that workers with longer potential benefit duration are more likely to remain with their establishments until closure and to enter nonemployment. These findings indicate that the effects of UB on the OTJS decisions of potential job losers should be considered in the optimal design of the parameters of unemployment insurance systems. (JEL J63, J64, J65)     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

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.     

Do Immigrants Catch‐up with the Natives in Terms of Earnings? Evidence from Individual Level Data of Canada

This article analyses differences in dynamic transitions into and out of any of the five hourly wage quintiles and quintile zero (unemployed and non‐employed people) between immigrants and natives for the period 1993‐2004. Using Longitudinal Level data from Survey of Labour and Income Dynamics (SLID) for men aged 25 to 55, we investigate how unobserved heterogeneity factors and initial conditions may affect individuals’ propensity to stay in or leave any of the wage quintiles. We also consider a dynamic multinomial logit model with the random effects approach. Empirical results show that state dependence exists in all hourly wage quintiles. Moreover, education, experience, marital status, immigrant minority status, and age at immigration are significant factors determining hourly wage differentials between immigrants and natives.     

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.     

An Auction Model of Canadian Temporary Immigration for the 21st Century

Temporary Canadian immigration has grown beyond traditional programs for students, caregivers and agricultural workers to include trade-related temporary visas under NAFTA and the GATS. Current Canadian debates envision supplanting Canada's permanent immigration programme with a temporary visa programme to remove skill shortages. Several questions emerge under these temporary schemes including who should choose the number of temporary immigrants and under what employment conditions. This paper offers an alternative policy to the current government-determined quota on temporary visas to answer these two questions. Under the proposed scheme offered in this paper, a Canadian worker can place a job voucher up for auction on the Internet. If the Canadian worker finds an acceptable offer for his one-year (or less) voucher, then the temporary immigrant is permitted to seek a job in Canada. Thus, under this auction scheme Canadian workers are compensated for the presence of temporary immigrants, and the actual number of temporary immigrants admitted depends on the total number of Canadian workers who sell their vouchers, not on a government fat.     

Virtues of SIN: can intensified public efforts help disadvantaged immigrants?

The labor market integration of immigrants is a top political priority throughout the Organization for Economic Cooperation and Development (OECD) countries. Social and fiscal gains, as well as sustained future labor supply make governments search for effective policies to increase employment among the mostly disadvantaged. The author studies SIN, a Swedish pilot workplace introduction program targeting these groups, using very detailed individual data and allowing for effects through several channels. The results show increased transitions from unemployment to work experience schemes and improved future employment probabilities for those who entered these schemes. A rough calculation suggests that each job year created cost about Euro 30,000.     

Educational Attainments of Immigrant Offspring: Success or Segmented Assimilation?1

In this article, I study the educational attainments of the adult offspring of immigrants, analyzing data from the 1996 panel of the Survey of Labour and Income Dynamics (SLID). Fielded annually since 1993 by Statistics Canada, respondents are asked for the first time in 1996 to report the birthplaces of their parents, making it possible to define and study not only the foreign‐born population (the first generation), but also the second generation (Canadian born to foreign‐born parents) and the third‐plus generation (Canadian born to Canadian‐born parents). The survey also asked respondents to indicate if they are members of a visible minority group, thus permitting a limited assessment of whether or not color conditions educational achievements of immigrant offspring. I find that “1.5” and second generation adults, age 20–64 have more years of schooling and higher percentages completing high school compared with the third‐plus generation. Contrary to the segmented “underclass” assimilation model found in the United States, adult visible minority immigrant offspring in Canada exceed the educational attainments of other not‐visible‐minority groups. Although the analysis is hampered by small sample numbers, the results point to country differences in historical and contemporary race relations, and call for additional national and cross‐national research.     

Household job search: A theoretical and empirical model

This article links the literature on family decision making and the economics of job search by examining job search by an unemployed individual within a household context. A theoretical model was developed which demonstrates the interdependence of the utility of household members when one is searching for work. The costs of search are borne by all household members while the benefits are captured in the searcher's expected future wage. A reservation wage was shown to be determined by household financing options, and the perception of relevant labor market parameters. An empirical model of the reservation wage for a sample of unemployment insurance recipients was estimated using two-stage least squares. Results, reported for male and female subgroups, support the hypotheses derived from the household job search model. In particular, the reservation wage was shown to depend on unemployment duration, labor market conditions, increased labor force participation of other household members, use of household assets to finance search, existence of dependents, and unemployment insurance benefits.     

Propensity of Canada's Foreign‐born to Claim Unemployment Insurance Benefits

This article examines the relationship between claiming unemployment insurance benefits in Canada and the immigrant class under which immigrants were admitted (namely skilled workers, assisted relatives, family class, refugees), using a new data set that combines income tax and immigration records. Claims rates (or the proportion of immigrants who claimed unemployment insurance benefits) are calculated for each immigrant landing class for the cohorts of immigrants who landed in 1980, 1985 and 1989; for each cohort, annual claims rates are presented from the year after landing to 1995. The claims rates indicate that there are significant differences among the different immigrant landing classes: those admitted as skilled workers have relatively low claims rates, those in the family class or assisted relatives have higher rates, and refugees have the highest rates. For all immigrant landing classes, claims rates rise rapidly during the two or three years after arrival in Canada, but decline thereafter for all classes. Differences in claims rates on unemployment insurance benefits remain across the immigrant landing classes after general economic conditions and some characteristics of the immigrants are controlled.     

Bridges and Barriers: Religion and Immigrant Occupational Attainment across Integration Contexts

This article advances knowledge about context‐dependent impacts of religion on immigrant structural integration. Drawing on theories of inter‐generational immigrant integration, it identifies and spells out two context‐dependent mechanisms through which religion impinges upon structural integration – as ethnic marker prompting exclusion and discrimination, or as social organization providing access to tangible resources. The propositions are empirically tested with nationally representative data on occupational attainment in three different integration contexts which vary in religious boundary configurations and religious field characteristics – the United States, Canada, and Western Europe. Using data from the US General Social Survey, the Canadian Ethnic Diversity Survey, and the European Social Survey, the article analyzes indirect and direct effects of religious affiliation and participation on occupational attainment among first and second generation immigrants. The analyses find only limited evidence for the assumption that in contexts with strong religious boundaries (such as Western Europe and, to a lesser extent, Canada), immigrants face religious penalties in structural integration. By contrast, the analyses support the assumption that in contexts with a thriving religious field (such as the United States and, to a lesser extent, Canada), religious attendance tends to be positively related to occupational attainment, especially for the second generation. For the first time, the article empirically tests arguments about transatlantic differences in the role of religion for immigrant structural integration, and it suggests ways of better integrating micro‐oriented survey research with macro‐oriented institutional analysis.     

Catching Up or Falling Behind? Continuing Wealth Disparities for Immigrants to Canada by Region of Origin and Cohort

This paper investigates wealth disparities among first‐generation immigrants using data from the 2012 Survey of Financial Security. We apply logistic and linear regression models to estimate disparities in homeownership and household equivalent net worth by immigrant status, region of origin, and time since arrival. By focusing on immigrant families from different regions who entered Canada at different points in time, this research applies theories related to assimilation, human capital, and structural barriers to wealth. Our findings demonstrate that even though many immigrant families transition into homeownership and grow their wealth over time, certain first‐generation immigrant groups continue to experience wealth disparities many years after their arrival to Canada. In particular, immigrant families from African, Asian, and Middle Eastern countries experienced the largest wealth gaps. Cet article examine les disparités de richesse entre les immigrants de première génération en utilisant les données de l'Enquête 2012 sur la sécurité financière. Nous appliquons des modèles de régression logistique et linéaire pour estimer les disparités dans la propriété et valeur nette des ménages équivalente par le statut d'immigrant, la région d'origine, et le temps écoulé depuis leur arrivée. En se concentrant sur les familles d'immigrants de différentes régions qui sont entrés au Canada à différents points dans le temps, cette recherche applique les théories liées à l'assimilation, le capital humain, et les obstacles structurels à la richesse. Nos résultats démontrent que même si de nombreuses familles d'immigrants transition vers la propriété et de croître leur richesse au fil du temps, certains groupes d'immigrants de première génération continuent d'éprouver des disparités de richesse de nombreuses années après leur arrivée au Canada. En particulier, les familles d'immigrants d'Afrique, d'Asie, et les pays du Moyen‐Orient ont connu les plus grands écarts de richesse.     

Unemployment classifications and subjective well-being

Further research on the impact of unemployment on workers and their families requires greater refinement and more precise measurement of the concept. While previous studies have indicated the effects of unemployment on a wide range of variables, such as health and well-being, many of these studies suffer from imprecision by conceptualizing unemployment too narrowly and by using too strict a dichotomy between currently employed and currently unemployed workers. This research effort attempts to broaden and refine the concept of unemployment by defining it in terms of two job dimensions: current employment status and previous job loss. Using this conceptualization, the authors find that current unemployment after other job losses may have more devastating effects on well-being than losing one's job for the first time. Similarly, among the currently employed, those who have lost jobs in the past may experience more emotional difficulties than those who have never lost their jobs.