Bridges or Barriers? The Relationship between Immigrants’ Early Labor Market Adversities and Long-term Earnings

Tingting Zhang, Rupa Banerjee

Research output: Contribution to journalArticlepeer-review

Abstract

Using data from the Extended Longitudinal Survey of Immigrants to Canada (LSIC-IMDB), this article investigates the association between early adverse labor market experiences in the host country and immigrants’ long-term earnings. We use Growth Curve Modeling (GCM) to estimate how months of joblessness, part-time status, and occupational mismatch during the first four years in Canada relate to immigrant men’s and women’s earnings trajectories over the following 10 years. Part-time employment, we find, is negatively associated with long-term earnings trajectories for both male and female immigrants, and male immigrants who are occupationally mismatched in the medium term also face a long-term wage penalty. Months of joblessness early on, however, is associated with relatively less wage disadvantage in later years. Since immigrants’ early difficulties are associated with long-term economic scarring, it is imperative to introduce early interventions to promote rapid assimilation.

Original languageEnglish (US)
JournalInternational Migration Review
DOIs
StateAccepted/In press - 2021
Externally publishedYes

Keywords

  • immigrant assimilation
  • Immigrant earnings
  • immigrant labor market outcomes
  • path dependency
  • wage scarring

ASJC Scopus subject areas

  • Demography
  • Arts and Humanities (miscellaneous)

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