Immigrants and Workplace Training: Evidence from Canadian Linked Employer–Employee Data

Abstract

Job training is one of the most important aspects of skill formation and human capital accumulation. In this study, we use longitudinal Canadian linked employer–employee data to examine whether white/visible minority immigrants and Canadian‐born emplooyees experience different opportunities in two well‐defined measures of firm‐sponsored training: on‐the‐job training and classroom training. While we find no differences in on‐the‐job training between different groups, our results suggest that visible minority immigrants are significantly less likely to receive classroom training, and receive fewer and shorter classroom training courses, an experience that is not shared by white immigrants. For male visible minority immigrants, these gaps are entirely driven by their differential sorting into workplaces with fewer training opportunities. For their female counterparts, however, they are mainly driven by differences that emerge within workplaces. We find no evidence that years spent in Canada or education level can appreciably reduce these gaps. Accounting for potential differences in career paths and hierarchical level also fails to explain these differences. We find, however, that these gaps are only experienced by visible minority immigrants who work in the for‐profit sector, with those in the nonprofit sector experiencing positive or no gaps in training. Finally, we show that other poor labor market outcomes of visible minority immigrants, including their wages and promotion opportunities, stem in part from these training gaps.

Race, ethnicity, and discrimination at work: a new analysis of legal protections and gaps in all 193 UN countries

“…For example, a study that experimentally changed the race/ethnicity of an employee in a photo while asking study participants to evaluate their performance demonstrated that simple acts such as being late for work led to a significantly greater negative impact on the appraisal of hypothetical employees when the photo showed a Black or Latinx employee than when the photo showed a white employee (Luksyte et al, 2013). Visible minorities are also less likely to receive training opportunities that can influence upward mobility in the labor force (Dostie and Javdani, 2020).…”

“…, 2013). Visible minorities are also less likely to receive training opportunities that can influence upward mobility in the labor force (Dostie and Javdani, 2020).…”

The 8-Inclusion Needs of All People: A Proposed Framework to Address Intersectionality in Efforts to Prevent Discrimination

“…Opportunity requires that all people are provided opportunities to fulfil their potential through participation (Ballen et al, 2019;Clark, 2022), when applying for jobs and promotions (Crown et al, 2020;Dostie & Javdani, 2020;Russen et al, 2021), and in education, training, and development (Brown et al, 2022;Cech & Waidzunas, 2021;Sisco, 2020).…”

Different degrees of skill obsolescence across hard and soft skills and the role of lifelong learning for labor market outcomes

“…In so doing, this paper also brings together and contributes to two strands of literature: First, to the literature on skill obsolescence and second to the literature on benefits of lifelong learning. While the literature on lifelong learning finds that training measures on average have positive effects on productivity and labor market outcomes (Carruthers & Sanford, 2018; Frazis & Loewenstein, 2005; Georgiadis & Pitelis, 2016; Jacobson et al, 2005; Konings & Vanormelingen, 2014), studies of that literature also find that these returns are very heterogeneous depending on educational levels and individual worker characteristics (Coelli & Tabasso, 2019; Dostie & Javdani, 2020; Gauly & Lechner, 2019; Leuven & Oosterbeek, 2008; Schwerdt et al, 2012).…”