Immigrants’ Initial Firm Allocation and Earnings Growth

Articles and reports: 11F0019M2016378


In spite of the role that employers may play in the selection of economic immigrants, little is known about whether and how firm-level characteristics are associated with immigrants’ labour market outcomes over the longer term. As a first step towards providing relevant evidence, this study asks whether there are large gaps between the initial earnings of immigrants starting with low- or high-paying firms, and whether the initial earnings gaps narrow with increasing length of residence in Canada. It further examines whether earnings returns to human capital among immigrants are larger if they start working in high-paying firms than in low-paying firms. This paper uses data from the Canadian Employer-Employee Dynamics Database (CEEDD) developed by Statistics Canada.

Issue Number: 2016378
Author(s): Ci, Wen; Hou, Feng
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HTMLJune 1, 2016
PDFJune 1, 2016