Klaus F. Zimmermann

Europe is discussing how to improve the labor market performance of economic migrants and their integration chances. The Canadian immigration system is often seen as a model case. Is there an earnings benefit depending on the selection channel under the economic classe? In a new Discussion Paper of the Global Labor Organization (GLO), Casey Warman, Matthew D. Webb and Christopher Worswick provide strong empirical evidence that selection matters. Using Canadian data sources they find that relative to the Family Class, the Adult Arrivals in the Skilled Worker category have earnings that are 29% higher for men and 38% higher for women.  Child Arrival immigrants landing in the Skilled Worker Class have similar earnings advantages.

GLO Fellow Casey Warman is associated with the Department of Economics, Dalhousie University and NBER.

GLO Fellow Matthew D. Webb is associated with the Department of Economics, Carleton University

GLO Fellow Christopher Worswick is associated  with the Department of Economics, Carleton University and CReAM

Casey Warman, Matthew D. Webb & Christopher Worswick: Immigrant Category of Admission and the Earnings of Adults and Children: How far does the Apple Fall? GLO Discussion Paper No. 196.  FREE DOWNLOAD: Download PDF

ABSTRACT

Immigrants  in  many  Western  countries  have  experienced  poor  economic  outcomes. This has led to a lack of integration of child immigrants (the 1.5 generation) and the second generation in some countries.  However, in Canada, child immigrants and the second generation have on average integrated very well economically.  The study examines the importance of Canada’s admission classes to determine if there is an earnings benefit of the selection under the Economic Classes to:  (i) the Adult Arrival immigrants and (ii) the Child Arrival immigrants (1.5 generation) once old enough to enter the labor market.  The study employs unique administrative data on landing records matched with subsequent  income  tax  records  that  also  allows  for  the  linking  of  the  records  of  Adult Arrival parents and their Child Arrival children.  It is found that relative to the Family Class, the Adult Arrivals in the Skilled Worker category have earnings that are 29% higher for men and 38% higher for women.  These differences persist even after controlling for  detailed  personal  characteristics  such  as  education  and  language  fluency  at  21% for men and 27% for women. Child Arrival immigrants landing in the Skilled Worker Class have earnings advantages (as adults) over their Family Class counterparts of 17% for men and 21% for women.  These Child Arrival Skilled Worker advantages remain at 9% for men and 14% for women after controlling for child characteristics, the Principal Applicant parent’s characteristics and the parent’s subsequent income in Canada. (Abstract marginally adapted from the DP.)

The paper is forthcoming in the Journal of Population Economics. The responsible Editor has been Klaus F. Zimmermann.

The study is in line with earlier research on entry category effects of migrant’s labor market performance. For an analysis see a recent review paper:

Zimmermann, Klaus F., Refugee and Migrant Labor Market Integration: Europe in Need of a New Policy Agenda. Mimeo. Presented at the EUI Conference on the Integration of Migrants and Refugees, 29-30 September 2016 in Florence. Published in: Bauböck, R. and Tripkovic, M.,  The Integration of Migrants and Refugees.  An EUI Forum on Migration, Citizenship and Demography, European University Institute, Robert Schuman Centre for Advanced Studies, Florence 2017, pp. 88 – 100.

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

Ends;

In the recent heated public debates in Europe about how to control refugee flows to Europe, it is often argued that foreign aid should be helpful to moderate such migration. In a new Discussion Paper of the Global Labor Organization (GLO), Axel Dreher, Andreas Fuchs and Sarah Langlotz provide strong empirical evidence using global data sources to suggest that while exogenous aid encourages recipient governments to support the return of citizens, we find no evidence that aid reduces worldwide refugee outflows in the short term; however, the authors find effects in the very long run.

GLO Fellow Axel Dreher  is associated  with the Alfred-Weber-Institute for Economics, Heidelberg University; KOF Swiss Economic Institute; CEPR; Georg-August University Goettingen; and CESifo.

GLO Fellow Andreas Fuchs is associated with the Research Center for Distributional Conflict and Globalization & Alfred-Weber-Institute for Economics, Heidelberg University.

GLO Fellow Sarah Langlotz is associated  with the Alfred-Weber-Institute for Economics, Heidelberg University.

Axel Dreher, Andreas Fuchs & Sarah Langlotz: The Effects of Foreign Aid on Refugee Flows, GLO Discussion Paper No. 195.  FREE DOWNLOAD: Download PDF

ABSTRACT

Titles and free access to all GLO Discussion Papers

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS, EconPapers).

Complete list of all GLO DPs downloadable for free.

Ends;