The dynamics of immigrant participation in entitlement programs: evidence from Canada, 1993–2007

Abstract Using uniquely rich Canadian administrative data from the 1993–2007 period, I find no evidence of rising Employment Insurance (EI) participation across recent‐immigrant cohorts and no evidence of rising EI participation with number of years spent in Canada beyond the short period following entrance into the Canadian labour market. I also find little evidence of the rising immigrant participation in Social Assistance (SA), either across recent arrival cohorts or with years in Canada. The results do not appear to be seriously affected by emigration and attrition within each immigrant cohort. While the immigrant participation in traditional ‘welfare’ programs such as Social Assistance has generally declined from 1993 to 2007, I show that Canada Child Tax Benefit and other federal and provincial programs aimed at providing financial assistance to families with children have become a major source of transfer income to immigrant families.