IDEAS home Printed from https://ideas.repec.org/p/cir/cirpro/2011rp-09.html
   My bibliography  Save this paper

Labour market integration of immigrants in Quebec: a comparison with Ontario and British Columbia

Author

Listed:
  • Brahim Boudarbat

Abstract

In 2010, the unemployment rate among immigrants aged 15 to 64 was 12.4 % in Quebec, compared to 10.4 % in Ontario and 8.8 % in British Columbia. The ratio of the unemployment rates of immigrants to those of the Canadian born was 1.7 in Quebec, 1.3 in Ontario, and 1.2 in British Columbia. The economic turmoil of recent years has had a greater impact on immigrants than on the Canadian born: Nation-wide, between 2008 and 2010 the unemployment rate of the former increased by 2.7 percentage points and that of the latter by 1.7 points. This deterioration is observed in all three of the provinces we examined?especially in British Columbia, where the unemployment rate of immigrants rose by 3.9 percentage points between 2008 and 2010. In Ontario, the unemployment rate of immigrants increased by 2.8 percentage points during the same period, versus only 1.2 percentage points in Quebec. The unemployment rate differential between immigrants to Quebec and British Columbia shrank dramatically between 2006 and 2010, from 7.9 to 3.6 percentage points. This trend is the result of a marked deterioration in the situation of immigrants on the B. C. labour market. With regard to the unemployment rate of those born in Canada, the situation in Quebec is comparable to that in British Columbia and better than in Ontario. Quebec also resembles other Canadian provinces how well it integrates immigrants having completed their postsecondary studies in Canada. However, this province is distinguished by an unemployment rate that is much higher for immigrants who obtained their postsecondary education abroad (13 %) than for those who acquired it here (7.8 %). In the two other provinces, the country in which the credentials were awarded weighs relatively less in the hiring decision: The unemployment rate for immigrants with foreign postsecondary credentials was 9.7 % in Ontario and 7.6 % in British Columbia in 2010. Rapid integration of newcomers poses another challenge for Quebec. In 2010, the unemployment rate of immigrants having been in Canada five years or less was 19.4 % in Quebec, compared to 17.9 % in Ontario and 13.8 % in British Columbia. Another specificity of Quebec's labour market is that it is less accessible to poorly educated immigrants: In 2010, the unemployment rate in Quebec of those with no degree, certificate or diploma was 20.5 %, in contrast to 15.8 % in British Columbia and 17.9 % in Ontario. On the other hand, the unemployment rate of immigrants with a university degree was 9.4 % in Quebec, 9.0 % in Ontario, and 8.0 % in British Columbia. Thus, integration into the labour market in Quebec and elsewhere does not only reflect recognition of foreign degrees, since those who don't have one typically encounter more problems finding work than others. Despite these difficulties integrating into the Quebec labour market, the percentage of immigrants who report having experienced problems or difficulties in finding work during their first four years in Canada is relatively lower in Quebec (63.8 %) than in Ontario (71.0 %) and British Columbia (65.1 %). According to the immigrants themselves, the lack of Canadian experience is the greatest hurdle to finding work (71.8 % in Quebec, 74.4 % in Ontario, and 64.1 % in British Columbia). This suggests that access to a first suitable job is crucial to the integration of immigrants. The second obstacle to obtaining a job involves language skills: 49.7 % of new immigrants to Quebec identified this as a problem, compared with 42.3 % in Ontario and 48.5 % in British Columbia. Thus, there is a case to be made for strengthening programs that help immigrants master the language used in the labour market of the host country. Whether well founded or not, the perception of discriminatory hiring practices is evoked by very few immigrants, but the proportion of those who do mention this is slightly higher in Quebec (21.8 %) than in Ontario (17.1 %) or British Columbia (12 %). These values fall to 7.4 %, 3.2 %, and 3.1 %, respectively, when only the main obstacles to employment are considered. It is in Quebec that the rate of overqualification of Canadian-born university graduates is lowest, at 34.9 % in 2010, versus 42.7 % in British Columbia and 40.1 % in Ontario. Immigrants to Quebec with a degree from a Canadian university also benefit from this comparative advantage, since their rate of overqualification (43.6 %) is lower than that of immigrants to British Columbia (47.9 %). As to immigrants with a university degree earned abroad, in Quebec 64.9 % of them are overqualified for their job, compared with 64.6 % in Ontario and 70.2 % in British Columbia. Thus, immigrants in this latter province are more successful in finding work than their counterparts in Quebec, but their jobs are less likely to match their skills. Overall, Canadian-born workers are more likely than immigrants to be employed in the public sector and in union shops. However, between 2006 and 2010 we observe an improvement in these indicators among immigrants. Quebec's public sector has the best record for employing immigrants. In 2010, 16.5 % of immigrants with a job in Quebec were employed by this sector, versus 14.9 % in Ontario and 14.8 % in British Columbia. Since 2006, the public sector's share in the employment of immigrants has increased by three percentage points in Quebec, compared to less than two points in the other two provinces. Consequently, the record of the Government of Quebec and its agencies cannot be faulted in the matter of the recruitment of immigrants. Immigrants increasingly opt for self-employment?and do so in a greater proportion than native-born Canadians. British Columbia is the province in which this form of employment is most widespread among immigrants (21.4 % in 2010). In Quebec, 18.7 % of immigrants created their own jobs (17.1 % in Ontario). This is a marked increase over 2006, when it was only 16.9 % (15.8 % in Ontario and 21.8 % in British Columbia). Promoting private initiative could play a central role in programs to foster integration into the labour market. As is the case for those born in Canada, the rate of unionization is considerably higher among immigrants in Quebec (32 % in 2010) than in Ontario (24.7 %) and British Columbia (28.3 %), and this rate is rising steadily (30.4 % in Quebec in 2006). The percentage of immigrants with a permanent job in 2010 was relatively lower in Quebec (84.9 %) than in Ontario (88.1 %) and British Columbia (89.1 %). The proportion of full-time jobs held by immigrants was 83.6 % in Quebec and 84.9 % in Ontario, versus only 80.7 % in British Columbia. With regard to wages, for each dollar earned by those born in Canada in 2010, immigrants earned $0.93 in Quebec and British Columbia and $0.95 in Ontario, on average. These earnings differentials do not account for differences between the characteristics of immigrants and those born in Canada. Multivariate analysis reveals that the observable characteristics of immigrants to Quebec fall far short of explaining the gaps that exist between them and immigrants to Ontario and British Columbia in terms of the unemployment rate. For example, the gap between the unemployment rate of immigrants to Quebec and to British Columbia during the 2006?2010 period would only have fallen by one-fifth had the two provinces received the same type of immigrants. The Quebec-Ontario differential would have been cut by one-third. Consequently, immigrants to Quebec must contend with a labour market that appears inherently less open to hiring them. This situation may be attributed to a reluctance among Quebec employers to recruit immigrants. It is also possible that immigrants to Quebec are less likely to revise downward their expectations in order to adapt to market realities. So, they may refuse taking available jobs that do not match their expectations, and by doing so, they may risk a long spell of unemployment. Notwithstanding the problems with integration detailed in this report, immigration remains a positive contribution: Overall, 87.6 % of immigrants aged 15 to 64 who are on the labour market?90.6 % of those with a university degree?have a job and are contributing to the socio-economic development of Quebec. Immigration certainly plays an important role in boosting demographic growth and providing manpower to the labour market. However, it should not detract from the importance of other policies that affect the size and skill level of the labour force in the short and long term. The government should continue to promote investment in Quebec's school system, persist in combating dropping out school, and strengthen incentives to families to boost the birthrate.

Suggested Citation

  • Brahim Boudarbat, 2011. "Labour market integration of immigrants in Quebec: a comparison with Ontario and British Columbia," CIRANO Project Reports 2011rp-09, CIRANO.
  • Handle: RePEc:cir:cirpro:2011rp-09
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2011RP-09.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan G. Green & David A. Green, 1999. "The Economic Goals of Canada's Immigration Policy, Past and Present," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 425-451, December.
    2. Philip Oreopoulos, 2009. "Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Six Thousand Resumes," NBER Working Papers 15036, National Bureau of Economic Research, Inc.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. Picot, Garnett, 2008. "Immigrant Economic and Social Outcomes in Canada: Research and Data Development at Statistics Canada," Analytical Studies Branch Research Paper Series 2008319e, Statistics Canada, Analytical Studies Branch.
    5. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    6. Brahim Boudarbat & Maude Boulet, 2010. "Immigration au Québec : Politiques et intégration au marché du travail," CIRANO Project Reports 2010rp-05, CIRANO.
    7. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 – 2000," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 641-672, May.
    8. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    9. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    10. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    11. Gilles Grenier & Serge Nadeau, 2010. "Why is Immigrants’ Access to Employment lower in Montreal than in Toronto?," Working Papers 1005E, University of Ottawa, Department of Economics.
    12. Zeman, Klarka & Frenette, Marc, 2007. "Why Are Most University Students Women? Evidence Based on Academic Performance, Study Habits and Parental Influences," Analytical Studies Branch Research Paper Series 2007303e, Statistics Canada, Analytical Studies Branch.
    13. Hou, Feng, 2010. "Entry Earnings of Canada’s Immigrants over the Past Quarter Century: the Roles of Changing Characteristics and Returns to Skills," CLSSRN working papers clsrn_admin-2010-23, Vancouver School of Economics, revised 22 Jun 2010.
    14. Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 92(2), pages 197-206, May.
    15. Kapsalis, Constantine & Tourigny, Pierre, 2004. "Duration of Non-standard Employment," MPRA Paper 25795, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smirnykh, L. & Polaykova, E., 2020. "Income and the integration of migrants in the Russian labour market," Journal of the New Economic Association, New Economic Association, vol. 47(3), pages 84-104.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boris Kaiser, 2016. "Decomposing differences in arithmetic means: a doubly robust estimation approach," Empirical Economics, Springer, vol. 50(3), pages 873-899, May.
    2. Vassilis Monastiriotis & Angelo Martelli, 2021. "Crisis, Adjustment and Resilience in the Greek Labor Market: An Unemployment Decomposition Approach," International Regional Science Review, , vol. 44(1), pages 85-112, January.
    3. Powers, Daniel A. & Yun, Myeong-Su, 2009. "Multivariate Decomposition for Hazard Rate Models," IZA Discussion Papers 3971, Institute of Labor Economics (IZA).
    4. Owen O’Donnell & Eddy van Doorslaer & Adam Wagstaff, 2012. "Decomposition of Inequalities in Health and Health Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 17, Edward Elgar Publishing.
    5. ChangHwan Kim, 2010. "Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method," Sociological Methods & Research, , vol. 38(4), pages 619-651, May.
    6. Stewart Williams, Jennifer Anne, 2009. "Using non-linear decomposition to explain the discriminatory effects of male-female differentials in access to care: A cardiac rehabilitation case study," Social Science & Medicine, Elsevier, vol. 69(7), pages 1072-1079, October.
    7. Marco Caliendo & Frank M. Fossen & Alexander Kritikos & Miriam Wetter, 2015. "The Gender Gap in Entrepreneurship: Not just a Matter of Personality," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 202-238.
    8. Laetitia Duval & François-Charles Wolff, 2016. "Emigration intentions of Roma: evidence from Central and South-East Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 28(1), pages 87-107, January.
    9. Blunch, Niels-Hugo & Das, Maitreyi Bordia, 2007. "Changing norms about gender inequality in education : evidence from Bangladesh," Policy Research Working Paper Series 4404, The World Bank.
    10. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.
    11. Liu, Hong & Fang, Hai & Zhao, Zhong, 2013. "Urban–rural disparities of child health and nutritional status in China from 1989 to 2006," Economics & Human Biology, Elsevier, vol. 11(3), pages 294-309.
    12. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    13. GOH, Chor-ching & LUO, Xubei & ZHU, Nong, 2009. "Income growth, inequality and poverty reduction: A case study of eight provinces in China," China Economic Review, Elsevier, vol. 20(3), pages 485-496, September.
    14. Takuya Hasebe, 2016. "Estimating the variance of decomposition effects," Applied Economics, Taylor & Francis Journals, vol. 48(20), pages 1902-1913, April.
    15. Barr, Tavis & Lin, Carl, 2015. "A detailed decomposition of synthetic cohort analysis," Economics Letters, Elsevier, vol. 127(C), pages 76-80.
    16. Kalb, Guyonne & Le, Trinh & Hunter, Boyd & Leung, Felix, 2012. "Decomposing Differences in Labour Force Status between Indigenous and Non-Indigenous Australians," IZA Discussion Papers 6808, Institute of Labor Economics (IZA).
    17. Paz Rico Belda & Bernardí Cabrer-Borrás, 2018. "Necessity and opportunity entrepreneurs: survival factors," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 249-264, June.
    18. Wolff, François-Charles, 2012. "Decomposition of non-linear models using simulated residuals," Economics Letters, Elsevier, vol. 116(3), pages 346-348.
    19. R. Mussa, 2014. "Extending the Oaxaca-Blinder Decomposition to the Independent Double Hurdle Model: With Application to Parental Spending on Education in Malawi," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 38(3), pages 39-54, December.
    20. Juan Acosta-Ballesteros & María del Pilar Osorno-del Rosal & Olga María Rodríguez-Rodríguez, 2021. "Measuring the effect of gender segregation on the gender gap in time-related underemployment," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-16, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirpro:2011rp-09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.