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The Economic Return on New Immigrants' Human Capital: the Impact of Occupational Matching

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Author Info
Goldmann, Gustave
Sweetman, Arthur
Warman, Casey

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Abstract

Using a data set that provides information on source country employment, we examine the effect of source and host country occupational matching on earnings and the economic rate of return to the foreign human capital of immigrants in Canada. Examining occupational distributions we find that immigrants converge very quickly to the skill distribution of the Canadian population in terms of the main job worked, although four years after landing they are still below the source country distribution. We also find that for a large proportion of immigrants, their intended occupation differs from their source country occupation. Although immigrants who are able to match their source and host country occupations obtain higher earnings, successful occupational matching does not have any impact on the return to foreign potential work experience. However, immigrants who match their source and host country occupations do have a higher return to schooling, particularly for females.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2021%20-%20Goldmann,%20Warman,%20Sweetman.pdf
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Publisher Info
Paper provided by UBC Department of Economics in its series CLSRN Working Papers with number clsrn_admin-2009-30.

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Length: 47 pages
Date of creation: 22 Apr 2009
Date of revision: 22 Apr 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-30

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Related research
Keywords: Immigrants; Occupational Matching; Human Capital; Canada;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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This page was last updated on 2009-10-25.


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