Bài giảng Labour Market Economics - Chapter 11 The Economics of Immigration

Chapter ElevenThe Economics of Immigration Created by: Erica Morrill, M.Ed Fanshawe CollegeChapter 11-1© 2002 McGraw-Hill Ryerson Ltd.Chapter FocusPatterns of immigration“Points System”Impact on native-bornAssimilationDrain on public treasury?2© 2002 McGraw-Hill Ryerson Ltd.Profile of Immigration to CanadaUntil the mid-1980s overall immigration levels fluctuated considerably200,000 immigrants per yearPer-capita immigration levels are slightly lower Source regions have changed dramatically3© 2002 McGraw-Hill Ryerson Ltd.The Policy EnvironmentTwo “levers”number of immigrantswho is admittedWhat are the policymakers are trying to achieve?4© 2002 McGraw-Hill Ryerson Ltd.Immigration PolicyAssume policy makers are attempting to maximize “national welfare”admitting immigrants to alleviate specific skill shortages or contributing to economic growthfamily reunificationsanctuary from political persecution5© 2002 McGraw-Hill Ryerson Ltd.Two ClassesAssessedevaluated on the basis of their likely contribution and success in Canadian labour marketNonassessedfamily and refugee classes6© 2002 McGraw-Hill Ryerson Ltd.The Impact of Immigration on Employment and WagesD0S0NN0W0WS1N1W1Impact on Supply OnlyD0S0NN0W0,WImpact on Supply and DemandS1N1W1D17© 2002 McGraw-Hill Ryerson Ltd.Effects of ImmigrationPositive EffectsFill markets where there is already a disequilibriumIncrease derived demandAlter trade patterns Invest 8© 2002 McGraw-Hill Ryerson Ltd.Economic AssimilationAssimilate in terms of hours working Starting out at a lower level than an native born individualExpect wages to increase over time9© 2002 McGraw-Hill Ryerson Ltd.Economic Assimilation ProfileInitially the immigrant may suffer an earning penalty (entry effect)As the immigrant ages earnings in this country should also riseIf assimilation is quick disparity offset by a short catch-up period10© 2002 McGraw-Hill Ryerson Ltd.Figure 11.5 Hypothetical Assimilation ProfileImmigrationNative-bornEarnings 20(YSM=0)TAge 65(YSM=45)Entry effect11© 2002 McGraw-Hill Ryerson Ltd.Immigrant Outcomes and Public PolicyCanadian Point System vs. U.S. Family Reunificationpoint system reduces admissions from less developed countrieshas an impact on tilting immigrant selection towards more skilled groupsindependent immigrants fare better than family class and refugee immigrants12© 2002 McGraw-Hill Ryerson Ltd.Impact of Immigration on Source CountriesBrain DrainLess-developed countries may lose their most skilled labour to more-developed countriesHome countries bear the cost of education and skilled emigrant reaps the benefitsPossible remedies13© 2002 McGraw-Hill Ryerson Ltd.End of Chapter Eleven14© 2002 McGraw-Hill Ryerson Ltd.