The legacy of immigration: labour market performance and education in the second generation

Abstract

Previous research finds that the children of immigrants, or the second generation, earn at least as much as other native born but that there are persistent ethnic differences in the intergenerational transmission of education and wages. We explain why these results are not incompatible and extend the empirical evidence in several directions using the Canadian Survey of Labour and Income Dynamics. First, we estimate a model of wages, earnings and hours worked using modern econometric techniques to corroborate earlier US results of complete integration by the second generation in the labour market. We find that ethnic differences in labour market performance are significant, but that these difference do not alter conclusions about the relative performance of the second generation. Second, we find a source of superior labour market performance for the second generation in higher educational attainment, which constitutes an important legacy of immigration that should not be ignored. Third, we find that the definition of the second generation matters. Men and women with two immigrant parents achieve about one additional year of education, while those with one immigrant parent achieve about one-half that educational advantage. We conclude that the education effect of an immigrant mother or father are comparable.

Seeking Success in Canada and the United States: The Determinants of Labour Market Outcomes Among the Children of Immigrants

“…In the 2006 Canadian census data, 36% of the children of immigrants held degrees, compared with 24% of the third-and-higher generation. And children with two immigrant parents register a larger positive education gap than those with only one immigrant parent (Hum and Simpson, 2007;Aydemir and Sweetman, 2008). This higher level of achievement is most noticeable among the visible minority 2 nd generation (Boyd, 2002;Aydemir and Sweetman, 2008).…”

Canadian economics research on immigration through the lens of theories of justice

“…We should tell them about the results of 14 Though, it is possible that immigrants arrive knowing they will have difficulties but making the move in the interests of the subsequent generations. Canadian researchers have been at the forefront of the literature on the economic outcomes of the children of immigrants (see, for examples, Finnie and Mueller 2008, Aydemir et al 2013, Aydemir and Sweetman 2008, Hum and Simpson 2007, Worswick 2004and Warman and Worswick 2016. These studies find that immigrant children and immigrants who arrive as children do relatively well in terms of educational attainment but since parental income plays some role in educational outcomes, they could do even better if the problem of poor immigrant earnings could be addressed (Bonikowska and Hou 2010). research showing that if they come from certain countries, they will have difficulty transferring their human capital and that the fact that they pass through a point system does not imply that the Canadian government has given them a stamp of likely success.…”

“…Canadian researchers have been at the forefront of the literature on the economic outcomes of the children of immigrants (see, for examples, Finnie and Mueller , Aydemir et al. , Aydemir and Sweetman , Hum and Simpson , Worswick and Warman and Worswick ). These studies find that immigrant children and immigrants who arrive as children do relatively well in terms of educational attainment but since parental income plays some role in educational outcomes, they could do even better if the problem of poor immigrant earnings could be addressed (Bonikowska and Hou ).…”

Immigrant Status and Secondary School Performance as Determinants of Post-Secondary Participation

“…The early Canadian research suggested that the most important determinant of the gap was parents" education, as well as age and residential location (Boyd 2002;Hum and Simpson, 2007;Bonikowska, 2008). However, parental education may be a proxy for other effects, such as the aspirations of the parents regarding educational outcomes, educational resources made available to the child, and the valuation of education by the parents or the student.…”