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Canada / Increases in immigration level bring immigrants real wages down

The annual level of immigration is one of the most critical components of a country’s immigration policy. It is difficult to directly compare the costs and benefits of changing immigration levels because immigration can serve multiple goals. However, some narrowly-defined effects can be empirically assessed.

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This study considers solely the potential influence of immigration levels on immigrant entry earnings. Using the Longitudinal Immigration Database (IMDB) over the 1982-to-2010 period, this study finds that a 10% increase in the size of a cohort of entering immigrants is associated with a 0.8% decline in real entry earnings among immigrant men and a 0.3% decline among immigrant women in that cohort when controls for changes in immigrant characteristics and macroeconomic conditions are applied.

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These effects are consistent across the immigrant entry earnings distribution, although somewhat weaker at the very top. These results also show that the effect of cohort size on entry earnings does not vary with general macroeconomic conditions.

Chosen excerpts by Job Market Monitor. Read the whole story at Annual Levels of Immigration and Immigrant Entry Earnings in Canada.

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