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Considering immigrant earnings in the context of post-arrival human capital investment implies: cohort quality should be defined in terms of the present value of the whole earnings profile; and, an appropriate definition of macro effects is obtained using the earnings profile of the native born cohort entering the labour market at the same time as an immigrant cohort. We illustrate this using Canadian immigrant earnings, where there were large cross-cohort earnings declines in the 1980s and 1990s. We find that changes affecting all new entrants play an important role in understanding immigrant earnings. In contrast, earlier approaches imply that macro events explain little of immigrant earnings patterns.
Authors
Research Fellow University of British Colombia
David is a Research Fellow of the IFS and a Professor in the Vancouver School of Economics at the University of British Columbia.
Christopher Worswick
Working Paper details
- DOI
- 10.1920/wp.ifs.2004.0413
- Publisher
- IFS
Suggested citation
Green, D and Worswick, C. (2004). Immigrant earnings profiles in the presence of human capital investment: measuring cohort and macro effects. London: IFS. Available at: https://ifs.org.uk/publications/immigrant-earnings-profiles-presence-human-capital-investment-measuring-cohort-and (accessed: 11 May 2024).
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