Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data

46 Pages Posted: 28 Sep 2015

See all articles by Neeraj Kaushal

Neeraj Kaushal

Columbia University - School of Social Work; National Bureau of Economic Research (NBER)

Yao Lu

Columbia University

Nicole Denier

McGill University

Julia Shu-Huah Wang

Columbia University

Stephen J. Trejo

University of Texas at Austin - Department of Economics; IZA Institute of Labor Economics

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Date Written: September 2015

Abstract

We study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the U.S. using nationally representative longitudinal datasets covering 1996-2008. Models with person fixed effects show that on average immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the U.S., on the other hand, experience positive annual growth in all three domains relative to U.S. born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the U.S. than in Canada. We further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

Suggested Citation

Kaushal, Neeraj and Lu, Yao and Denier, Nicole and Wang, Julia Shu-Huah and Trejo, Stephen J., Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data (September 2015). NBER Working Paper No. w21591, Available at SSRN: https://ssrn.com/abstract=2666359

Neeraj Kaushal (Contact Author)

Columbia University - School of Social Work ( email )

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National Bureau of Economic Research (NBER)

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Yao Lu

Columbia University ( email )

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United States

Nicole Denier

McGill University

Julia Shu-Huah Wang

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Stephen J. Trejo

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States
512-475-8512 (Phone)
512-471-3510 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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