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Immigrant Economic and Social Integration in Canada: Research, Measurement, Data Development

By

Garnett PicotDirector GeneralAnalysis Branch

Statistics Canada

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Introduction Integration a major policy issue

» 20% foreign born, 47% in Toronto» Visible minority neighbourhood in three largest cities: six in 1981:

254 in 2001» Immigration at high levels, likely to remain so or increase

Deterioration in economic outcomes of immigrants

Statistics Canada responded to need for policy-relevant analysis» Research on social and economic outcomes» Development of new data sets» Adding new variables to existing data sets

64 research articles in past six years

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Deteriorating earnings outcomes

0.50

0.60

0.70

0.80

0.90

1.00

1 to 5 6 to 10 11 to 15 16 to 20 21 to 25

Years since immigration

Ln

(im

m./C

an

. bo

rn e

arn

ing

s) 1975 to 1979 cohort

1980 to 1984 1985 to 1989

1990 to 1994

1995 to 1999

2000 to 2004

Earnings* of immigrants compared with those of comparable Canadian-born - Log earnings ratio** -

Full-time, full-year workers aged from 16 to 64, males

Source: Census of Population* Predicted values based on a model** The ln (immigrant earnings/Canadian-born earnings)

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Why the decline in entry earnings among immigrants

Research in Canada has focuses on entry earnings decline

Changing source regions

Deteriorating labour market outcomes for new labour market entrants in general

“Credentialism” issue: important, but perhaps not explanation for the decline?

Declining returns to foreign work experience

Since 2000, poorer labour market for IT professionals and engineers, in which immigrants are highly concentrated

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Changes in selection system had significant effect on characteristics of entering immigrants

% with % in skilled % of skilled principle

Entering university economic applicants in IT/

cohort degree class engineering occupations

1991 17.7 33.0 5.2

2000 44.0 52.1 42.9

2005 45.8 49.7 30.6

Resulted in improvement in economic outcomes at top of immigrant earnings distribution: did little to improve low-income rate, chronic poverty

Deterioration post 2000 concentrated among highly educated in skilled economic class (IT/engineer): difficulty integrating these workers

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Economic outcomes remain quite positive

Educational attainment equal or better than among Canadian-born youth

Rates of employment/unemployment and reliance on government transfers similar to Canadian-born

Earnings equal to or higher than Canadian-born

Outcomes for second generation Canadians: The children of immigrants

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Entering immigrants perspective on life in Canada

Longitudinal survey of immigrants» 2000 entering immigrant cohort» Tracked for four years, 12,000 respondents

Some dissatisfaction with economic experiences… lack of employment opportunities one of aspects disliked the most

» But 84% to 92% indicated quality of life better Freedom, rights, safety security and prospects for future liked the best Material well-being better than before?

Economic class: ⅓ better, ⅓ same, ⅓ worse; family class: 58% better

Three quarters would come to Canada if had to make decision again 70% of immigrants initiated citizenship process after four years, additional

22% intend to About two-thirds of Canadian report positive outlook towards immigration

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Data sources and data development Census of population remains most important source for

immigration researchAdvantages

– Sample size… entering cohorts, detail on variation in outcomes by source country, education, city, ethnic group, occupation, etc.

– Analysis of neighbourhood effects possible

Disadvantages– No “language ability” measure although language variables– No data on immigrant entry class: economic, family class,

refugee

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Other data sources used in immigrant analysis

Survey of Labour and Income Dynamics Adult Literary Survey National Population Health Survey National Longitudinal Survey of Children and Youth

Data development to enhance ability to conduct analysis» Joint with policy department partners» Immigrant Data Base

– Longitudinal taxation records– To assess earnings trajectories of entering

immigrants in different entry classes– No comparison groups

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» Longitudinal Administrative Data Base– 20% sample of tax filers– Population coverage in high 90s among working age

population– Taxation data, formed families– For entering cohorts 1980 to 2004, focus on

Chronic low-income Earnings gap at entry and trajectory Use of welfare programs Out migration of entering immigrants

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» Longitudinal Survey of Immigrants– 2000 entering cohort, track for four years– True panel survey– No comparison group– Information on housing, education, foreign credential recognition,

employment, health, values, social networks, perceptions of settlement in Canada

– 12,000 sample

» Ethnic Diversity Survey– Uses 2001 Census as sample frame– 57,000 sample size, cross-sectional– Information on ethnic origin, religion, language, family

background, social network, civic participation, attributes, trust, etc.

» Added immigrant identifies to labour force survey in 2007

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Important topic in many countries

No research at Statistics Canada, but can speculate as to why not a major issue to date

Possible reasons Canada has never pursued or developed a single national identify. At inception in 1867, two founding peoples

(French and English).

Canada is a nation of immigrants, and seen to be so by population. Canadians take pride in ability to welcome newcomers.

Immigrants very highly educated, generally ambitious, seek best for their children.

Effect of immigration on social cohesion in Canada

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All political parties agree immigration essential to future economic youth, generally accepted by population.

Political and civic engagement of visible minorities significant

Immigration is racially very diverse; no single groups on which discontent can focus

No illegal immigrant problem on which to focus

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Statistics Canada’s response to concerns re: immigration integration guided by priorities in place:

» Substantive research and analysis is important

» Co-operation with policy departments a priority

» Links with academic community important

» Statistics Canada has comparative advantage re: analysis in some areas

Conclusion