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The Short-Term Effects of COVID-19 on Labour Market Outcomes of Recent Immigrants to Canada

Author

Listed:
  • Fang, Tony

    (Memorial University of Newfoundland)

  • Gunderson, Morley

    (University of Toronto)

  • Ha, Viet Hoang

    (Memorial University of Newfoundland)

  • Ming, Hui

    (Sichuan University)

Abstract

Our difference-in-difference analysis indicates that Covid-19 had a disproportionately adverse effect on the employment of recent immigrants relative to the Canadian-born and this was especially the case in lower-level occupations and in industries hard hit by the pandemic. The effects of Covid on actual hours worked for those who remained employed were modest as were the differential effects for recent immigrants, highlighting that most of the adjustment occurred in the extensive margin of reduced employment rather than the intensive margin of hours worked. Covid was associated with higher wages for recent immigrants who remain employed relative to their Canadian-born counterparts, and this is especially the case for recent immigrants in lower-level occupations and hard-hit industries. Reasons for these patterns are discussed.

Suggested Citation

  • Fang, Tony & Gunderson, Morley & Ha, Viet Hoang & Ming, Hui, 2025. "The Short-Term Effects of COVID-19 on Labour Market Outcomes of Recent Immigrants to Canada," IZA Discussion Papers 17756, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17756
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    References listed on IDEAS

    as
    1. Kourtney Koebel & Dionne Pohler, 2020. "Labor Markets in Crisis: The Double Liability of Low‐Wage Work During COVID‐19," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 503-531, October.
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    3. Rafael Gomez & Morley Gunderson & Xiaoyu Huang & Tingting Zhang, 2015. "Do Immigrants Gain or Lose by Occupational Licensing?," Canadian Public Policy, University of Toronto Press, vol. 41(s1), pages 80-97, August.
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    5. Charles M. Beach & Christopher Worswick, 2011. "Toward Improving Canada's Skilled Immigration Policy: An Evaluation Approach," C.D. Howe Institute Policy Studies, C.D. Howe Institute, number 2011, January.
    6. Charles M. Beach & Christopher Worswick, 2011. "Toward Improving Canada's Skilled Immigration Policy: An Evaluation Approach," C.D. Howe Institute Policy Studies, C.D. Howe Institute, number 20111, January.
    7. Thomas F. Crossley & James Ted McDonald & Christopher Worswick, 2001. "Immigrant Benefit Receipt Revisited: Sensitivity to the Choice of Survey Years and Model Specification," Journal of Human Resources, University of Wisconsin Press, vol. 36(2), pages 379-397.
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