Dynamic Causal Effects of Post-Migration Schooling on Labour Market Transitions

CRREP Working Paper Series 2018-02

32 Pages Posted: 20 May 2018 Last revised: 16 Jul 2018

See all articles by Marie Albertine Djuikom

Marie Albertine Djuikom

World Bank

Guy Lacroix

Université Laval - Département d'Économique; IZA Institute of Labor Economics

Date Written: March 1, 2018

Abstract

Immigrants often experience difficulties integrating the local labor market. In Canada, the government of Quebec implemented a program back in 1996 that explicitly selected highly qualified workers (Bachelors’, Masters’ or PhD’s). This paper investigates the extent to which the return to foreign-acquired human capital is different from the education acquired in Quebec. Specifically, we seek to estimate the benefits of post-migration education over foreign-education on the transitions between qualified and unqualified jobs and unemployment by means of a multiple-spells and multiple-states model. Our results indicate that immigrants originating from well-off countries have no need to further invest in domestic education. On the other hand, immigrants from poorer countries, despite being highly qualified, benefit greatly from such training in the long run as it eases their transitions into qualified and unqualified jobs and out of unemployment. Our results also indicate that selection into domestic education needs to be accounted for to avoid significant selection problems.

Keywords: Post-Migration Schooling, Foreign Education, Labour Market Histories, Multiple-Spells Multiple-States Models

JEL Classification: C31, C41, J15, J24, J64, J61

Suggested Citation

Djuikom, Marie Albertine and Lacroix, Guy, Dynamic Causal Effects of Post-Migration Schooling on Labour Market Transitions (March 1, 2018). CRREP Working Paper Series 2018-02. Available at SSRN: https://ssrn.com/abstract=3175373 or http://dx.doi.org/10.2139/ssrn.3175373

Marie Albertine Djuikom (Contact Author)

World Bank

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Guy Lacroix

Université Laval - Département d'Économique ( email )

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IZA Institute of Labor Economics

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Germany

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