Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data

Neeraj Kaushal, Columbia University
Yao Lu, Columbia University
Nicole Denier, McGill University
Julia Shu-Huah Wang, Columbia University
Stephen Trejo, University of Texas at Austin

Canada and the United States are among the largest immigrant destinations in the world. For decades, the two countries have received large immigrant flows from many common sending nations while pursuing different policies regarding the admission and integration of immigrants. The two North American neighbors also have structural differences in their labor markets and welfare systems. Previous research suggests that such differences have resulted in different levels of immigrant selection with respect to observed and unobserved skills. Yet, little is known about relative economic welfare of immigrants in these two countries, and no research has examined this question using longitudinal data that take into account the differential selection of immigrants. This paper uses nationally representative longitudinal data to study the employment and earning growth of immigrants at the two destinations. The use of longitudinal data enables us to control for some of the selection upon entry and selective return migration.