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We use a special Canadian dataset containing both literacy test scores and standard labour market variables to examine the impact of literacy on immigrant earnings. Having a literacy measure allows us to examine issues related to discrimination and the sources of lower returns to foreign acquired education and experience among immigrants. We find that the native-born literacy distribution (assessed in English or French) dominates that for immigrants. However, immigrantsand the native born appear to obtain the same return to their literacy skills. We argue that this does not support a discrimination explanation for immigrant-native born earnings differentials. Immigrant shortfalls in literacy can account for about one-half of the earnings gap between university educated immigrants and similarly educated native-born workers. However, low returns to foreign acquired experience have a larger impact on the differential and those low returns are not related to literacy differences. Thus, low literacy among immigrants is an important input to understanding immigrant-native born earnings differentials but is not the dominant explanation.
Green and Riddell (2003) argue that the types of literacy questions asked in the IALS are particularly conducive to using the literacy test scores as measures of cognitive skills possessed by the respondent at the time of the survey. [...] The combination of this return to literacy and the lower literacy levels of immigrants explains part of the immigrant earnings differential. [...] However, because G1i is observed and included as an explanatory variable, the quasi-reduced form coefficients no longer reflect the contribution of education and experience to the production of literacy skills and the contribution of literacy skills to earnings. [...] Rather, they reflect the contribution of education and experience to the production of the unobserved skills G2 and G3, and the impact of these unobserved skills on earnings.4 The quasi-reduced form equation (4) is our starting point for estimation. [...] Figure 1(a) plots the kernel density function of the individual averages of the document and quantitative literacy scores.13 The immigrant distribution is bi-modal with a main mode near the mode in the native born distribution and a smaller, though still substantial mode, near the bottom of the distribution.14 The smoothing inherent in the kernel estimator makes it appear that there is mass across.
The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community.
The Economics of Immigration summarizes the best social science studying the actual impact of immigration, which is found to be at odds with popular fears. Greater flows of immigration have the potential to substantially increase world income and reduce extreme poverty. Existing evidence indicates that immigration slightly enhances the wealth of natives born in destination countries while doing little to harm the job prospects or reduce the wages of most of the native-born population. Similarly, although a matter of debate, most credible scholarly estimates of the net fiscal impact of current migration find only small positive or negative impacts. Importantly, current generations of immigrants do not appear to be assimilating more slowly than prior waves. Although the range of debate on the consequences of immigration is much narrower in scholarly circles than in the general public, that does not mean that all social scientists agree on what a desirable immigration policy embodies. The second half of this book contains three chapters, each by a social scientist who is knowledgeable of the scholarship summarized in the first half of the book, which argue for very different policy immigration policies. One proposes to significantly cut current levels of immigration. Another suggests an auction market for immigration permits. The third proposes open borders. The final chapter surveys the policy opinions of other immigration experts and explores the factors that lead reasonable social scientists to disagree on matters of immigration policy.
Human migration has reached an unprecedented level, and the numbers are expected to continue growing into the foreseeable future. Host societies and migrants face challenges in ensuring that the benefits of migration accrue to both parties, and that economic and socio-cultural costs are minimized. An insightful comparative examination of the policies and practices that manage and support immigrants, Twenty-First-Century Immigration to North America identifies and addresses issues that arose in the early years of the twenty-first century and considers what to expect in the years ahead. The volume begins with an overview of immigration policies and practices in the United States and Canada, then moves to an investigation of the economic and socio-cultural aspects, and concludes with a dialogue on precarious migration. Taking a multidisciplinary approach, the editors include research from the areas of psychology, political science, economics, sociology, and public policy. Underscoring the complicated nature of immigration, this collection aims to foster further discussion and inspire future research in the United States and Canada.
The economic literature on international migration interests policymakers as well as academics throughout the social sciences. These volumes, the first of a new subseries in the Handbooks in Economics, describe and analyze scholarship created since the inception of serious attention began in the late 1970s. This literature appears in the general economics journals, in various field journals in economics (especially, but not exclusively, those covering labor market and human resource issues), in interdisciplinary immigration journals, and in papers by economists published in journals associated with history, sociology, political science, demography, and linguistics, among others. - Covers a range of topics from labor market outcomes and fiscal consequences to the effects of international migration on the level and distribution of income – and everything in between. - Encompasses a wide range of topics related to migration and is multidisciplinary in some aspects, which is crucial on the topic of migration - Appeals to a large community of scholars interested in this topic and for whom no overviews or summaries exist
Since the 1960s, new and more diverse waves of immigrants have changed the demographic composition and the landscapes of North American cities and their suburbs. The Housing and Economic Experiences of Immigrants in U.S. and Canadian Cities is a collection of essays examining how recent immigrants have fared in getting access to jobs and housing in urban centres across the continent. Using a variety of methodologies, contributors from both countries present original research on a range of issues connected to housing and economic experiences. They offer both a broad overview and a series of detailed case studies that highlight the experiences of particular communities. This volume demonstrates that, while the United States and Canada have much in common when it comes to urban development, there are important structural and historical differences between the immigrant experiences in these two countries.
The success and well-being of immigrant youth has become a vital issue for many receiving societies in North America and Europe as a result of global migration. This volume brings together leading scholars on immigrant youth to discuss current research and its implications for education, policy, and intervention.
Written by two internationally renowned experts in the field, this book explores the determinants of dominant language proficiency among immigrants and other linguistic minorities and the consequences of this proficiency for the labour market.Using empirical material from a range of countries, including the USA, Canada, Australia and Bolivia, the a
This edited collection includes (but is not limited to) contributions in the form of chapters from the participants of the Workshop on the Macroeconomics of Migration at the University of Sheffield in June 2018. Migration is one of the most debated issues currently and is a pervasive feature of our economies. While extensive academic work has looked at the microeconomic aspects of migration, an open question is to better understand the links between migration and macroeconomic aggregates, such as per capita GDP. This book explores this overarching question, which has hit the key political and social debates all over Europe. Countries that are traditionally viewed as hosting economies for immigrants, such as for instance the UK and Germany, are concerned by immigration, while sending countries, such as Southern and Eastern European countries, are concerned by emigration. The contributions in this edited collection analyse empirically and theoretically the challenges international economic migration generates both in sending and receiving countries, thus offering a comprehensive approach to the question asked above. The book looks at several important issues in the current debates related to the labour market effects of migration for natives, the bi-directional relation between taxation and migration, migration and the informal economy, migration and business cycle dynamics, and brain waste. This edited collection will be of interest to academics, practitioners and policy makers who wish to take a closer look at the macroeconomic effects of migration and learn more about the current challenges posed by immigration in some countries and emigration in others.