Immigrants and Ethnic Differences

Interestingly this adoption does not improve ones

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Unformatted text preview: lish sounding name to make pronunciation easier for non-Chinese and to signal North American assimilation. Interestingly, this adoption does not improve one’s chances for a callback. There does not appear to be a large difference in callback rates between Type 1 and Type 2 resumes, which systematically differ only by whether they list a bachelor’s Fortin – Econ 560 Lecture 4B 4. Canadian applicants that differed only by name had substantially different callback rates: Those with English-sounding names received interview requests 40 percent more often than applicants with Chinese, Indian, or Pakistani names (16 percent versus 11 percent) He interpreted his results as suggesting considerable employer discrimination against applicants with ethnic names or with experience from foreign firms In an update of that paper, he includes a fake applicant with a Greek name and found a lower call-back rate as for Chinese applicant Nepotism (or favoritism) may be at play. Fortin – Econ 560 Lecture 4B Another set of related questions are: o How do immigrants fare in the labor market? o Do they ever converge with similarly-skilled natives? Early studies (Chiswick, 1978) using single cross-sectional analysis misleadingly argued that immigrants’s earnings overtook those of natives 10 to 15 years after arrival Dollars 9,000 C Immigrants P A n n u al E arn in g s (1 9 7 0 D o l l a r s ) 8,000 1960 Wave P* Natives P 7,000 Q 6,000 1980 Wave and Natives Q* Q R 5,000 2000 Wave R 4,000 C 20 25 30 35 40 45 50 55 60 R* 65 Age 20 Age 40 60 Fortin – Econ 560 Lecture 4B This so-called “economic assimilation” of immigrants is confounded that cohort effects A solution proposed by Borjas (1994) to follow an entry cohort or a synthetic cohort over pooled cross-sectional address the problem But two selection issues remain Return migration: Do the successes or failures leave? Child immigrants: o Consider all arrivals between 1965-69, in 1970, we observe the wages of only the adult immigrants. In 1980, can observe all but the youngest kids. By 1990, can observe all wages. Abbott and Beach (2009) follow an actual entry cohort of immigrants from the IMDB, but which comparison group is most appropriate? Source: (1994) Borjas Source: Borjas (1994, Table 6) Removing entry cohort and life-cycle effects Employment Earnings for All Immigrants to Canada by Landing Year ($2003) from the Longitudinal IMmigration Data Base (IMDB) o Links immigrants landed from 1980 to 2002 with their income tax filings 60000 50000 40000 30000 1986 1982 20000 1999 2000 2001 1996 1991 10000 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 0 Tax Year 1982 1986 1991 1996 1999 2000 2001 Entry Canadian Fortin – Econ 560 Lecture 4B Thus, in comparing the earnings of immigrants to those of the Canadian-born, in addition to demographic shifts among the Canadian-born, one has to be mindful of 1) Entry cohorts effects o macroeconomic cycle effects o country of origin, language factors o network effects in finding jobs 2) Assimilation effects (years since migration), o confounded by life-cycle effects o confounded by re-emigration or returns Also of interest for policy purposes, immigrant class Source: Abbott and Beach (2009) Fortin – Econ 560 Lecture 4B With pooled cross-section data (fr...
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This document was uploaded on 02/26/2014 for the course ECON 560 at The University of British Columbia.

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