Immigrant Assimilation, Canada 1971–2006: Has the Tide Turned?

Based on the micro files of the Canadian Census we document an increasing earnings penalty for cohorts of immigrants arriving after the late-1970s, especially for the most recent cohort. We also find much quicker assimilation rates for these cohorts, especially for the most recent cohort. Since the late-1970s, the increasing earnings penalty dominated their more rapid assimilation, so that immigrants exhibited ever-deteriorating patterns of integration into the Canadian labour market. For the most recent cohort (2002–2006), this reversed itself, suggesting that the tide may have turned. We find this for both men and women. Our findings are robust across alternative regression specifications, as well as a sample that only considers full-time and full-year workers.