Academic Literature

Canada / Up to 76.3% of the immigrant males and 71.8% of the females are over-educated study finds

“The contribution of immigrants to a host country’s welfare largely depends on the degree to which their foreign education translates into useable qualifications and skills in the host labour market. A common finding is of the imperfect transferability of human capital across countries” writes Mesbah Fathy Sharaf in Job-Education Mismatch and Its Impact on the Earnings of Immigrants: Evidence from Recent Arrivals to Canada (Adapted quotes to follow).

New immigrants typically face barriers when searching for a job which, in principle, matches their qualifications. Such barriers either prevent or delay integration into the host labour market. In particular, immigrants who find a job on arrival in the host country usually work in a job which requires a level of education which is less than they actually possess. This form of job-education mismatch is known in the literature as over-education. If a worker is employed in a job requiring more years of schooling than the worker actually has, then the worker is under-educated. Most of the job-education mismatch literature focuses on studying over-education in view of its high incidence and significant adverse effects.

Using the most recent Longitudinal Survey of Immigrants to Canada, this paper measures the incidence of job-education mismatch, particularly over-education, examines its determinants, and estimates its impact on the earnings of immigrants. Job-education mismatch is measured using the realized match method, and the corresponding earnings impact is estimated using an over-required-under education technique. Determinants of over-education are examined using a bivariate probit model to account for selectivity into employment. Panel data estimation methods are used to estimate earnings equations and the analysis is stratified by gender.

Findings

Results show that recent immigrants to Canada have a persistent high incidence and intensity of over-education with a substantial negative impact on their earnings. In particular, two-thirds of recent immigrants to Canada are over-educated with a wage loss of 8%, while an under-educated immigrant loses around 2% on average. Results also show that proficiency in English or French and post-immigration investment in education and training significantly reduce the likelihood of being over-educated. The findings of this study could benefit policies directed to help immigrants integrate in the labour market.

Capture d’écran 2013-02-19 à 11.28.07

The results indicate a high incidence of over-education among recent immigrants to Canada since 76.3% of the immigrant males and 71.8% of the females is over-educated in the first wave of the LSIC (6 months after becoming permanent residents). These figures did not improve much after four years from arrival, when 70.4% of the males and 64.6% of the females are over-educated. The results also indicate that 15.7% of the immigrant males and 16.6% of the females are under-educated after 6 months from arrival in Canada. As a benchmark for comparison purpose, the incidence of over-education among Canadian-born is estimated as 43.85% using data from the 2001 Canadian census.

Chosen excerpts by Job Market Monitor from

 Capture d’écran 2013-02-19 à 11.30.11

via Job-Education Mismatch and Its Impact on the Earnings of Immigrants: Evidence from Recent Arrivals to Canada.

Related Posts

Canada / Only 2.9% of immigrants in 2008 had actually become citizens

POSTED BY  ⋅ JANUARY 16, 2013 ⋅ 1 COMMENT

Hundreds of thousands of people come to Canada as immigrants every year, but fewer are actually becoming citizens. Internal Citizenship and Immigration documents obtained through an access to information request show only 2.9% of immigrants who gained permanent residency in Canada in 2008 had actually become citizens by the time they were generally eligible to … Continue reading »

Canada / Immigration / Good on adoption, less on integration

POSTED BY  ⋅ DECEMBER 19, 2012 ⋅ LEAVE A COMMENT

Canada is known internationally as the poster country for multiculturalism. We have the highest level of immigration per capita of any country, about 250,000 immigrants a year. Almost 20 per cent of our residents are foreign-born. In about 20 years, Statistics Canada predicts that about a quarter of our population will be foreign-born. While many … Continue reading »

Canada / Immigrants / Employment increased 4.3% in 2011 while virtually unchanged among core-aged Canadian born

POSTED BY  ⋅ DECEMBER 14, 2012 ⋅ LEAVE A COMMENT

In 2011, employment among landed immigrants in the core working-age group of 25 to 54 increased 4.3% from the previous year. The majority of the growth occurred among established immigrants who had been in the country for more than 10 years. Over the same period, employment among core-aged Canadian born was virtually unchanged. The employment rate of core-aged immigrants in 2011 was 75.6%, compared with 82.9% for … Continue reading »

Canada / New immigration stream for 3,000 skilled immigrants to fill ‘serious’ labour shortages

POSTED BY  ⋅ DECEMBER 11, 2012 ⋅ 1 COMMENT

Canada will open its doors to 3,000 skilled tradespeople starting next year under a new immigration stream set to launch Jan. 2, 2013, Immigration Minister Jason Kenney announced Monday. “The new skilled trades stream will help address serious labour shortages in some regions of the country, and support economic growth,” he said. “For too long, … Continue reading »

Canada / Immigration / New skilled trades program

POSTED BY  ⋅ DECEMBER 10, 2012 ⋅ LEAVE A COMMENT

Immigration Minister Jason Kenney is set to unveil the details of a new program that should speed the arrival of tradespeople in Canada whose skills are in demand. The program will give more weight to applications from people with skills that are desperately needed in many parts of the country, particularly in the West, according … Continue reading »

Canada / Among the world’s leaders in immigrant integration

POSTED BY  ⋅ DECEMBER 3, 2012 ⋅ LEAVE A COMMENT

A major international study ranks Canada among the world’s leaders in immigrant integration, but there are signs that advantage is on the wane. Canada sits near the top of most categories in the study, which measures integration of immigrants in the 34 wealthy countries of the Organisation for Economic Co-operation and Development. The report will … Continue reading »

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter

Categories

Archives

%d bloggers like this: