NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Jiang Li

Economic Analysis Division
Statistics Canada
100 Tunney's Pasture Driveway
Ottawa, ON, Canada K1A 0T6

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Institutional Affiliation: Statistics Canada

NBER Working Papers and Publications

May 2020Employer Policies and the Immigrant-Native Earnings Gap
with Benoit Dostie, David Card, Daniel Parent: w27096
We use longitudinal data from the income tax system to study the impacts of firms’ employment and wage-setting policies on the level and change in immigrant-native wage differences in Canada. We focus on immigrants who arrived in the early 2000s, distinguishing between those with and without a college degree from two broad groups of countries – the U.S., the U.K. and Northern Europe, and the rest of the world. Consistent with a growing literature based on the two-way fixed effects model of Abowd, Kramarz, and Margolis (1999), we find that firm-specific wage premiums explain a significant share of earnings inequality in Canada and contribute to the average earnings gap between immigrants and natives. In the decade after receiving permanent status, earnings of immigrants rise relative to tho...
 
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