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.     

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.     

Self‐Selection and Economic Assimilation of Immigrants: The Case of Iranian Immigrants Arriving to Three Countries During 1979–1985

The study is designed to evaluate the impact of the interaction between patterns of immigrants' self‐selection and the context of reception at destinations on economic assimilation of Iranian immigrants who came to three countries during 1979–1985. For that purpose, we studied immigrants at the age of 22 or higher upon arrival by utilizing the 5 percent 1990 and 2000 Public Use Microdata files (PUMS) of the United States census, the 20 percent demographic samples of the 1983 and 1995 Israeli censuses of population, and the 1990 and 2000 Swedish registers. The results indicate that the “most qualified” immigrants – both on observed and unobserved variables – who left Iran right after the Islamic revolution, arrived in the US Their positive self‐selection led them to reach complete earnings assimilation with natives there. Iranian immigrants who arrived in Israel and Sweden did not achieve full earnings assimilation with natives. Of these two groups, a smaller immigrant‐to‐native gap in average earnings was found in Sweden, but in the same time Iranian immigrants in Israel were more positively self‐selected and showed better assimilation than their counterparts in Sweden. Market structure played a certain role in immigrants' earnings assimilation mainly in Sweden.     

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.     

Interests Aren’t Everything: An Exploration of Economic Explanations of Immigration Policy in a New Destination

Current debates around US immigration policy are playing out against a backdrop that has changed significantly in the past 20 years: immigrants have increasingly gravitated towards “new destinations”; a large and growing portion of immigrants are undocumented; and the federal vacuum in responding to the promise and problems of these new immigration trends has devolved policy to the states. As a result, we have seen innovation on the state level as policymakers seek to accommodate, welcome or resist immigration, with varying degrees of success. In this paper, we explore the case of Utah as a new immigration destination, seeking to understand its transformation from a state with very inclusive immigrant policies as late as 1999 to one currently adopting highly restrictive immigrant policies. To explain this trajectory, we test three prominent materialist theories of public policy: instrumentalism, structuralism and strategic-relational approaches. We draw on a decade’s worth of primary data – including data on state-level legislation, key economic indicators, public statements concerning immigration from the private business sector and the LDS Church, and the editorial content of the state’s two major newspapers regarding immigration – to examine the policy explanations that grow out of interest-based theories of the state. Whereas these theories provide robust explanations for a large and diverse array of public policies, we find that they fall short in explaining immigration policy. While conventional wisdom – and extensive scholarly research – suggests that economic interests drive policy, we find that the policies around immigrants challenge this economic reductionism, suggesting the need for more complex and ideational accounts of this important phenomenon.     

The quantity and quality of new immigrants to the US

Since immigration to the US began to accelerate in the 1970s, economic and social policy issues surrounding immigration frequently raise concern and generate debate. These policy debates often aim to mitigate the costs of immigration and augment the benefits. Key to this is understanding the characteristics of immigrants, especially those related to economic success and integration. A commonly accepted finding in the economic literature regards the declining economic “quality” of successive immigrant cohorts as measured by differences in entry wages across cohorts. In this paper, I refine our understanding of immigrant cohort quality. I show that increasing competition in the labor market among immigrants can explain a significant portion of declining “quality”. This result suggests that labor market interactions are as important to immigrant economic integration as their inherent “quality”.     

Exploring the Contextual Determinants of Individual Attitudes toward Immigrants and Criminal Activity and their Spillover Policy Implications

Immigrants are routinely tied to a range of social problems in the policy making process in the US political system. Little is known however about the extent to which citizens hold attitudes that connect immigrants to particular social problems and whether these attitudes spill over to influence citizens’ preferences toward specific public policy alternatives that might appear to be largely independent of immigrants and immigration. Investigating the nexus between immigration and crime, we ask how Anglo whites’ contextual environments influence their propensity to link immigrants to a salient social pathology like crime. Results show that whites living in states where immigrant populations have increased most dramatically and in states with lower socioeconomic characteristics are more likely to associate immigration with increased criminal activity. Whites’ attitudes toward immigration‐induced crime has important spillover implications to the larger public policy making process as whites who view immigrants as a cause of criminal activity are more likely to support tougher criminal sentencing and the death penalty.     

A Capture–Recapture Approach to Estimation of Refugee Populations

The debate over immigration continues to be one of the most politically charged policy issues in the United States (US). Given the charged nature of this topic, it is vitally important to have reliable data on not only the number of US foreign nationals but also the characteristics of this extremely heterogeneous group – a population comprised not only of immigrants but also of refugees. There exist a small number of data sources for informing policy and practice at the national level. However, such data are often lacking for smaller geographical areas. This paper describes a recent effort to generate serviceable data on the immigrant and refugee population for a medium‐sized metropolitan area in the US. The objectives of this research were twofold. Our first goal was to provide local stakeholders with information to assist them with resettling and obtaining funding for immigrants and refugees. The second aim was to develop better techniques for tabulating diverse refugees and immigrants in a medium‐sized community. By comparing and contrasting three data sources – that is, refugee services, public schools and a local health plan – we are able to generate estimates of the local refugee and immigrant population. During the period from 2005 to 2007, we estimate the total number of immigrants and refugees in the community to be somewhere between 10,938 and 13,282. Although perhaps a bit on the high end due to methodological assumptions, these estimates seem plausible, based on previously cited figures for the region. While such estimates are valuable, a number of shortcomings related to the data prevent us from painting a more complete picture of these populations. We conclude this paper with a number of recommendations that will assist others in planning research designed to inform migration policy and practice in medium‐sized metropolitan areas.     

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.     

The Changing Effect of Education on Asian Immigrants' Self‐Employment

This article examines whether the post‐1990 Asian immigrants have a lower likelihood of being self‐employed than their counterparts in the 1970s–1980s immigrant cohort. More important, it investigates whether the relationship between education and self‐employment changes across the two immigrant cohorts. The authors framed these questions in the context of the changing U.S. immigration policy and used the ethnic and class recourses thesis and the thesis emphasizing immigrants' disadvantages for employment in the general labor market as two major theoretical orientations. Data come from the 1990 Census 5 percent sample and the 2007–2011 American Community Survey 5‐year sample. Findings from logistic regression analyses show that the second‐cohort Chinese, Asian Indian, and Korean immigrants have a lower likelihood of being self‐employed than their first‐cohort counterparts. Findings further show that education has a positive effect on the likelihood of self‐employment for the first‐cohort Asian Indian, Filipino, and Korean immigrants. For the second cohort, education has a negative effect on the likelihood of self‐employment for all Asian immigrant groups. The authors discussed the implications of these findings and concluded that well‐educated second‐cohort Asian immigrants face fewer disadvantages in finding their occupations commensurate with their educational level in the general labor market than their first‐cohort counterparts.     

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.     

Are immigrants and natives perfect substitutes in production?

This article discusses whether immigrant and native labor are perfect substitutes in production when conventional measures of skill and demographic characteristics are held constant. The ratio of immigrant to native labor and the ratio of immigrant to native earnings are studied in 5 major immigrant receiving countries with other variables held constant. Countries included are 1) the US and Britian, where the foreign born are only about 5% to 6% of the adult male labor force; 2) Canada and Australia, where they are about 20% and 30%, respectively; and 3) Israel, where the foreign born are about 3/4 of the Jewish adult male labor force. The relative earnings of adult male immigrants and the adult male native-born sons of immigrants are found to be lower when the labor supply of immigrants is greater. The estimated elasticity of substitution between immigrant and native labor is high, but significantly less than infinity. Workers who are relatively more intensively in the favorable self selection characteristics of immigrants are not perfect substitutes for workers relatively more intensive in country-specific skills. As immigrants increase in the labor force, their relative earnings tend to fall, although the decline is small. Economies have sufficiently flexible markets and develop institutional arrangements to mitigate the relative fail in immigrant earnings as their relative supply increase.     

‘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.     

What Makes an Entrepreneur and Does it Pay? Native Men,Turks, and Other Migrants in Germany

This paper focuses on the entrepreneurial endeavours of immigrants' and natives in Germany, concentrating on Turks, Germany's largest immigrant group and one under‐studied in the literature. Self‐employed Turks in Germany represent about 70 per cent of all Turkish entrepreneurs in the European Union. We use data from the German Socio‐economic Panel to study patterns of self‐employment. First, we identify the characteristics of the self‐employed individuals and understand their underlying drive into self‐employment. Next we investigate how immigrant entrepreneurs fare in the labour market and compare their earnings to those of the natives. It is important for decision makers to understand entrepreneurial patterns so that they can shape policy that better fosters entrepreneurial activities. This paper presents several findings that can inform better policymaking. First, our investigation indicates that education is not decisive in determining whether one will choose self‐employment over salaried work nor in explaining earnings. The estimated age‐earnings profiles are the same for natives and immigrants, while the proclivity to become self‐employed is concave with respect to age for both groups. Immigrants' start with a higher probability to work than natives but have a slower increase in the self‐employment probabilities thereafter. The earnings of self‐employed immigrants' are higher initially, but their earnings path crosses eventually that of the natives. Second, we find some suggestion of ethnic entrepreneurial spirit. Turks are 70 per cent more likely to be self‐employed than any other immigrant group, although they do not necessarily earn more. These patterns should be further explored.     

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.     

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.     

Chinese Immigrants in the U.S. Labor Market: Effects of Post‐Tiananmen Immigration Policy1

The Tiananmen Square protests in 1989 and ensuing government crackdown affected Chinese nationals not only at home but also around the world. The U.S. government responded to the events in China by enacting multiple measures to protect Chinese nationals present in the United States. It first suspended all forced departures among Chinese nationals present in the country as of June 1989 and later gave them authorization to work legally. The Chinese Student Protection Act, passed in October 1992, made those Chinese nationals eligible for lawful permanent resident status. These actions applied to about 80,000 Chinese nationals residing in the United States on student or other temporary visas or illegally. Receiving permission to work legally and then a green card is likely to have affected recipients’ labor market outcomes. This study uses 1990 and 2000 census data to examine employment and earnings among Chinese immigrants who were likely beneficiaries of the U.S. government’s actions. Relative to immigrants from Hong Kong, Taiwan, and South Korea – countries not covered by the post‐Tiananmen immigration policy measures – highly educated immigrants from mainland China experienced significant employment and earnings gains during the 1990s. Chinese immigrants who arrived in the U.S in time to benefit from the measures also had higher relative earnings in 2000 than Chinese immigrants who arrived too late to benefit. The results suggest that getting legal work status and then a green card has a significant positive effect on skilled migrants’ labor market outcomes.     

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.     

Predicting Earnings Among Immigrants To Canada: The Role Of Source Country

The current study examines the importance of country of origin in predicting the labour market earnings among recent immigrants to Canada. The authors argue that, in addition to individual‐level characteristics associated with immigrant capital, macro‐level features associated with immigrant origins must be taken into account when considering the economic performance of immigrants in their host country. Country‐level factors are said to accompany immigrants to their destination country, which generate disparities in the “quality” of immigrants’ human and social capital across origin groups, as well as differences in how they are received by the resident population. The present study uses random effects multilevel modelling to investigate the extent to which immigrant incomes vary randomly across source country while taking into consideration individual‐level characteristics selected on the basis of human capital, social capital, and discrimination theories. Multilevel regression analysis confirms that immigrant incomes indeed vary significantly by country of origin, though the effect is small. Furthermore, it is revealed that the gross domestic product (GDP) of the sending country explains much of the level 2 variability in the labour market earnings of recent immigrants, as well as the relationship between racial minority status and immigrant incomes. The practical significance and policy implications of these findings are discussed.     

Migration Policy and Industrial Structure: The Case of Switzerland

Structural change in OECD countries, emphasizing knowledge‐based sectors, has led to an increasing demand for highly skilled labour. One means of meeting this demand has been to implement a selective immigration policy. Such policies, however, have been criticized for channelling labour into low‐producing sectors and occupations, hampering structural change. Proponents of such criticism point to Switzerland's former policy of channelling immigrants into so‐called seasonal sectors, a practice abandoned in the early 1990s, as having contributed to Switzerland's low growth rates. To assess this, we here analyse the amended migration policy's effects on skill structure and sectoral distribution of immigration flows using data from the Swiss Census of 1990 and 2000 to determine whether the new policy has led to an immigrant inflow more adapted to the processes of structural change. We find that the share of highly skilled immigrants has increased notably under the new migration policy. Our analysis also shows an important change in the sectoral focus of the new arrival inflow. Not only have fewer immigrants been entering declining sectors, but the majority of migrants arriving under the new policy regime have been absorbed into growing and knowledge‐based sectors, meaning they are employed primarily in service and knowledge‐intensive sectors. Overall, the analysis provides ample evidence that the current admission policy as ositively contributed to tructural change in Switzerland.