Immigrant Earnings Differentials in Canada: A More General Specification of Age and Experience Effects

Michael Abbott and Charles Beach

Empirical Economics, 1992, vol. 17, issue 2, 38 pages

Abstract: This paper investigates empirically the role of age and arrival cohort effects on immigrant earnings differentials. The dataset used consists of a sample of 5,069 adult Canadian male employees from the 1973 Job Mobility Survey, a non-census dataset that provides information on actual work experience, language attributes, and numerous parental family background characteristics. It thus allows a more general specification of foreign-born/native-born earnings differentials, particularly the effects of age, work experience and years since immigration. The results confirm the importance of cross-sectional age cohort effects and refine previous findings on arrival cohort effects. Sample selectivity bias is investigated and found to be significant only when respondents' occupation is not controlled for. Adjustment for sample selection bias leaves essentially unchanged the main findings.

Date: 1992
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