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Effects of Business Cycles on the Labour Market Assimilation of Immigrants

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  • Aydemir, Abdurrahman

Abstract

This study addresses the effects of macroeconomic conditions on the labour market outcomes of immigrants. It simultaneously identifies both the effects of macroeconomic conditions at the time of entry into the labour market and at the time of the survey was taken, while allowing for cohort effects. Also, for the first time in the literature, the impacts on labour force participation along with employment outcomes are explored. The study uses 19 annual cross-sections of the Survey of Consumer Finances, covering the period from 1979 to 1997. The results suggest that the deterioration in the assimilation of recent immigrants is partly due to the adverse economic conditions they face in the year they enter the labour market and the subsequent years following. Macroeconomic conditions at the time of labour market entry have adverse impacts on both labour force participation (LFP) and employment. With the inclusion of controls for macroeconomic conditions, the significance and magnitude of the assimilation-measuring co-efficient increases. Therefore, not only are the estimated cohort effects sensitive to the inclusion of controls for business cycles, but so too are the assimilation profiles.

Suggested Citation

  • Aydemir, Abdurrahman, 2003. "Effects of Business Cycles on the Labour Market Assimilation of Immigrants," Analytical Studies Branch Research Paper Series 2003203e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2003203e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2003203
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    References listed on IDEAS

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    1. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December.
    2. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of Immigrant Men in Canada: Job Tenure, Cohort, and Macroeconomic Conditions," ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    3. Philip M. Bodman & Mark Crosby, 2000. "Phases of the Canadian business cycle," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(3), pages 618-633, August.
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    Cited by:

    1. Andrew Clarke & Ana Ferrer & Mikal Skuterud, 2019. "A Comparative Analysis of the Labor Market Performance of University-Educated Immigrants in Australia, Canada, and the United States: Does Policy Matter?," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 443-490.
    2. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    3. 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.
    4. Waad K. Ali & K. Bruce Newbold, 2020. "Geographic variations in precarious employment outcomes between immigrant and Canadian‐born populations," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1185-1213, October.
    5. Girard, Magali & Smith, Michael, 2009. "Working In a Regulated Occupation in Canada: An Immigrant - Native-Born Comparison," CLSSRN working papers clsrn_admin-2009-53, Vancouver School of Economics, revised 24 Oct 2009.
    6. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, University Library of Munich, Germany.
    7. Mercè Sala-Rios & Teresa Torres-Solé & Mariona Farré-Perdiguer, 2018. "Immigrants’ employment and the business cycle in Spain: taking account of gender and origin," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 463-490, August.
    8. Parvinder Hira-Friesen, 2018. "Immigrants and Precarious Work in Canada: Trends, 2006–2012," Journal of International Migration and Integration, Springer, vol. 19(1), pages 35-57, February.
    9. Javdani, Mohsen & McGee, Andrew, 2013. "Intra-Firm Upward Mobility and Immigration," IZA Discussion Papers 7378, Institute of Labor Economics (IZA).
    10. Marie-Pier Joly, 2019. "The Employment and Occupational Status of Migrants from Countries Experiencing Armed Conflict," Journal of International Migration and Integration, Springer, vol. 20(4), pages 1071-1095, November.
    11. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Aydemir, Abdurrahman & Skuterud, Mikal, 2004. "Explication de la deterioration des gains au niveau d'entree des cohortes d'immigrants au Canada, 1966-2000," Direction des études analytiques : documents de recherche 2004225f, Statistics Canada, Direction des études analytiques.
    13. Huanan Xu, 2018. "First fired, first hired? Business cycles and immigrant labor market transitions," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-36, December.
    14. Picot, Garnett & Sweetman, Arthur, 2011. "Canadian Immigration Policy and Immigrant Economic Outcomes: Why the Differences in Outcomes between Sweden and Canada?," IZA Policy Papers 25, Institute of Labor Economics (IZA).
    15. Ana Ferrer & Mikal Skuterud & Andrew Clarke, 2018. "A Comparative Analysis of the Labour Market Performance of University-Educated Immigrants in Australia, Canada, and the United States," Working Papers 1807, University of Waterloo, Department of Economics, revised 02 Jan 2018.

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