Technological change,occupational tasks and declining immigrant outcomes: Implications for earnings and income inequality in Canada

The earnings and occupational task requirements of immigrants to Canada are analyzed. The growing education levels of immigrants in the 1990s have not led to a large improvement in earnings as one might expect if growing computerization and the resulting technological change was leading to a rising return to non‐routine cognitive skills and a greater wage return to university education. Controlling for education, we find a pronounced cross‐arrival cohort decline in earnings that coincided with cross‐cohort declines in cognitive occupational task requirements and cross‐cohort increases in manual occupational task requirements. The immigrant earnings outcomes had only a small effect on overall Canadian earnings inequality.     

The Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss

The paper studies the way in which labor supply responses enable households to smooth consumption in the face of crop loss. The 1993 Indonesian Family Life Survey is unusual because it contains self-reported information on crop loss and on household responses to crop loss. Of those households that report a crop loss, 41.6% also report that they responded by taking an extra job. Using these self-reported measures, the authors find evidence which suggests that the income associated with this shock-induced labor supply is important in allowing the household to avoid reducing consumption expenditure. Household members, however, do not seem to increase their total hours of work. They appear to just reallocate their time from household farming to other labor market activities.     

Immigrant earnings profiles in the presence of human capital investment: Measuring cohort and macro effects

We argue that when immigrant earnings are considered in the context of post-arrival human capital investment: cohort quality should be defined in terms of the present value of the whole earnings profile; and, an appropriate definition of “macro” effects is obtained using the earnings profile of the native born cohort entering the labor market at the same time as an immigrant cohort. We illustrate this by using Canadian immigrant earnings, where there were large cross-cohort earnings declines in the 1980s, 1990s and early 2000s. We find that changes affecting all new entrants play an important role in understanding immigrant earnings. In contrast, earlier approaches imply that “macro” events explain little of immigrant earnings patterns.     

Immigrant earnings returns to post-migration education: Evidence for Canada, 1999–2013

Using the recently created Canadian Employer–Employee Dynamics Database (CEEDD), we analyze the earnings returns to investments in post secondary education by immigrants made after arrival in Canada. Fixed effects estimation results suggest that postsecondary education (PSE) in Canada increases annual earnings of men and women by 21.9% and 32.8%, respectively, for those enrolled full time and by 11.2% and 21.0% for those enrolled part time, respectively. Earnings effects of PSE are larger for immigrants admitted in the skilled worker category relative to family class immigrants and to refugees and are increasing in the level of education of the immigrants at landing. Immigrants from non-traditional source countries generally have larger returns to PSE than immigrants from English-language source countries, such as the US and the countries of Northwestern Europe.     

Mandatory Retirement Rules and the Retirement Decisions of University Professors in Canada

We examine the impact of mandatory retirement on the retirement decisions of professors in Canada using administrative data. Estimation of a discrete time hazard model indicates that faculty members at universities with mandatory retirement at age 65 have exit rates at age 65 that are around 30 to 38 percentage points higher than those of their counterparts at universities without mandatory retirement. This overall difference in exit rates is found when the sample is restricted by discipline, professional rank and type of university. Similar results are found for both men and women; however, the magnitude of this effect is somewhat smaller for women. Restricting the analysis to include faculty members who received their highest degree at age 34 or older does not affect the magnitude of the difference in exit rates between faculty at universities without mandatory retirement and those at universities with mandatory retirement. The estimated survival probabilities indicate that only 22.7% of faculty members employed at age 64 at universities without mandatory retirement will continue to be employed at the same university at age 72.     

The evolution of male-female earnings differentials in Canadian universities,1970–2001

Abstract .  The evolution of academic salaries and the gender earnings gap in Canadian universities is analysed using a unique Statistics Canada data set containing detailed information on all full-time teachers at Canadian universities over the period 1970 through 2001. Male salaries declined across cohorts, while female salaries remained stable; consequently, male-female earnings differentials have narrowed. Recent years have also seen increasing variation in academic salaries for both men and women. A gender earnings gap remains, the bulk of which can be explained by differences in men's and women's rank and field. The unexplained earnings gap has decreased over time.     

DEMOGRAPHIC TRENDS AND CONSUMPTION INEQUALITY IN AUSTRALIA BETWEEN 1975 AND 1993

We examine trends in consumption inequality among Australian households using the Australian Bureau of Statistics Household Expenditure Surveys collected over the period 1975 to 1993. We find that the distribution of consumption is much more equal than that of income and that both income and consumption inequality rose by significant amounts over the period. However, consumption inequality rose by much less (the Gini coefficient for income inequality rose by 17 percent while that for nondurable consumption rose by 9 percent). We then examine the effects of demographic trends, specifically population aging and changing family structures, and find they account for only a minor fraction in the overall growth in economic inequality.     

Adaptation and inequality: children of immigrants in Canadian schools

Abstract.  Children of immigrant parents have comparable test scores in reading and mathematics to those of the children of the Canadian born. Children of immigrant parents whose mother tongue is neither English nor French have low performance in vocabulary before age six but performance in mathematics and reading that is comparable to that of the children of Canadian‐born parents by age fourteen. The 10th percentile of the vocabulary distribution is lower for children of immigrant parents whose mother tongue is neither English nor French than for children of Canadian‐born parents. However, this difference is not present in reading and mathematics test scores. JEL classification: J150, I210     

Canadian economics research on immigration through the lens of theories of justice

We assess the current state of knowledge in the economics of immigration and consider how economic theories of knowledge can be used to further the goal of developing a just immigration policy. In the process, we highlight the contributions of economists working in Canada and Canadian economists internationally in furthering our understanding of this important research area. We identify research gaps such as the need for more research on the underlying causes of the poor returns to foreign work experience for immigrants from non‐traditional source countries and the effect of immigrants on stimulating innovation. More research is also needed on the implications of temporary foreign worker (TFW) programs and the growing importance of employers in immigrant selection systems.