First and Second Generation Immigrant Educational Attainment and Labor Market Outcomes: A Comparison of the United States and Canada

50 Pages Posted: 22 Sep 2006

See all articles by Abdurrahman Aydemir

Abdurrahman Aydemir

Sabanci University

Arthur Sweetman

McMaster University - Department of Economics; McMaster University - Centre for Health Economics and Policy Analysis (CHEPA); IZA Institute of Labor Economics

Date Written: September 2006

Abstract

The educational and labor market outcomes of the first, first-and-a-half, second and third generations of immigrants to the United States and Canada are compared. These countries' immigration flows have large differences in source countries, scale and timing, and Canada has a much larger policy emphasis on skilled workers. Following from these, the educational attainment of US immigrants is currently lower than that in Canada and the intergenerational transmission of education is expected to cause the gap to grow. This in turn influences earnings. Controlling only for age, the current US second generation has earnings comparable to those of the third, while earnings are higher for the second generation in Canada. Interestingly, the positive wage gap in favour of first-and-a-half and second generation immigrants in Canada is exceeded by the gap in educational attainment, but a lower immigrant rate of return attenuates education's impact. Moreover, observable characteristics explain little of the difference in earnings outcomes across generations in the US but their introduction into an earnings equation causes the Canadian second generation premium to switch signs and become negative relative to the third.

Keywords: immigration, second generation, Canada, United States, education

JEL Classification: J61, J62, I29

Suggested Citation

Aydemir, Abdurrahman and Sweetman, Arthur, First and Second Generation Immigrant Educational Attainment and Labor Market Outcomes: A Comparison of the United States and Canada (September 2006). IZA Discussion Paper No. 2298. Available at SSRN: https://ssrn.com/abstract=932037

Abdurrahman Aydemir

Sabanci University ( email )

Orta Mahalle √úniversite Caddesi 27
Istanbul, Orhanli, 34956 Tuzla 34956
Turkey

Arthur Sweetman (Contact Author)

McMaster University - Department of Economics ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

McMaster University - Centre for Health Economics and Policy Analysis (CHEPA) ( email )

1280 Main St. W
Hamilton, ON L8S 4M4
Canada

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
349
Abstract Views
1,762
rank
85,844
PlumX Metrics