Estimating the Immigrant Wage Penalty Across Categories of Admission

Abstract

This paper exploits a unique record linkage between Immigration Refugees and Citizenship Canada’s (IRCC’s) administrative immigration records and the 2016 Canadian Census to analyze the immigrant/native-born wage gaps and wage assimilation profiles across categories of admission. I find that immigrants admitted under the Skilled Workers category as principal applicants (PAs) experience better assimilation profiles than those admitted under non-economic categories. I also find that Family Class immigrants face a poorer assimilation profile compared with immigrants admitted under economic categories. Canadian Experience Class (CEC) PAs and the Provincial Nominee Program (PNP) PAs face the best profiles out of all categories. Lastly, immigrants admitted under Business Class have the worst wage outcomes.