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Immigrants? Initial Firm Allocation and Earnings Growth

Feng Hou and Wen Ci

Analytical Studies Branch Research Paper Series from Statistics Canada, Analytical Studies Branch

Abstract:

In spite of the role that employers may play in the selection of economic immigrants, little is known about whether and how firm-level characteristics are associated with immigrants? labour market outcomes over the longer term. As a first step towards providing relevant evidence, this study asks whether there are large gaps between the initial earnings of immigrants starting with low- or high-paying firms, and whether the initial earnings gaps narrow with increasing length of residence in Canada. It further examines whether earnings returns to human capital among immigrants are larger if they start working in high-paying firms than in low-paying firms. This paper uses data from the Canadian Employer-Employee Dynamics Database (CEEDD) developed by Statistics Canada.

Keywords: Ethnic diversity and immigration; Labour; Labour market and income; Occupations; Wages; salaries and other earnings (search for similar items in EconPapers)
Date: 2016-06-01
New Economics Papers: this item is included in nep-bec
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