Entry Class and the Earnings Attainment of Immigrants to Canada, 1980­1995

Richard A. Wanner

Canadian Public Policy, 2003, vol. 29, issue 1, 53-71

Abstract: An important set of theoretical and policy questions revolves around the comparative success in the Canadian labour market of immigrants entering the country as independent immigrants under the point system, through family reunification programs, or as refugees. I estimate models predicting log earnings from the entry class composition of each entry cohort by country of birth and its interaction with years since arrival controlling for other characteristics known to be related to earnings attainment using data from Citizenship and Immigration Canada's Landing Information Data System (LIDS) for 1980 to 1995 merged with the 1996 Census of Canada Public Use Microdata File. While the point system used to screen immigrants to Canada for skills and labour market suitability does indeed select immigrants who have higher earnings upon arrival than those who are not screened, over time the earnings of the two groups converge after human capital differences are taken into account. In a comparison of the earnings of the refugee class to those of all other classes, the results here also indicate convergence net of human capital differences. These patterns are observed for both men and women.

Date: 2003
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