Labor Market Experiences of Canadian Immigrants with Focus on Foreign Education and Experience

Abstract

Recent Canadian immigrants have increasing education levels but decreasing earnings, partly due to the devaluation of foreign education and work experience. This study uses 2002 Ethnic Diversity Survey data and examines the value attributed to foreign education for immigrants based on their duration of stay in Canada, which proves to be an important methodological distinction. Immigrants from developing countries experience the most acute devaluation. The findings outline the limitations of human capital theory in explaining the labor market experience of Canadian immigrants and have implications for the current “point system” used to select immigrants to Canada.

Episodes of Non-Employment Among Immigrants to Canada from Developing Countries

“…Previous studies on immigrant economic assimilation did not make this distinction and tend to consider immigrants who are members of visible minorities as a homogenous group in terms of their human capital. This is problematic because economic integration in the host country depends largely on where the human capital was acquired (Buzdugan and Halli, 2009). As Buzdagan and Halli argued, while certain immigrants from more developed countries see their skills acquired outside of Canada devalued, those belonging to a visible minority group, therefore those who came from developing countries, are faced with a much more serious problem because, often times, their degree is simply not recognized.…”

“…Boulet (2012) emphasizes specifically that the diplomas of male immigrants who are members of a visible minority are disqualified in 31,1% of the cases and those of female counterparts in 32,2% of the cases. This hypothesis also explains why work experience acquired outside of Canada is not recognized (Buzdugan and Halli, 2009). …”

“…For instance, in previous studies, it has been shown that the level of integration into the labour market depends on where the person's degree was obtained. One such study is that of Buzdugan and Halli (2009) who found for example that, Canadian employers give more value to degrees earned in Western and Northern European countries, as well as in other developed regions and countries. This can be explained in part by the "selection" that Canadian employers do in the hiring process.…”

“…Notably, they found that immigrants from developing countries tend to earn less compared to those who came from more developed countries and compared to Canadians-born individuals (Boyd, 1985;Li, 2000;2001;Pendakur, 2000;Kazemipur and Halli, 2001;Buzdugan and Halli, 2009). The reasons for this poor economic performance are multifold.…”

Overseas-qualified professionals: the search for professional re-entry and its perceived impact on settlement

“…Individuals then negotiate labour market entry based on their acquired human capital, as employers seek to hire individuals with the required level of training and skill. Some researchers have argued that this theory best explains how the labour market works (McAllister, 1995) while others have challenged this view due to the poor labour market performance of many skilled immigrants (Buzdugan & Halli, 2009). Ho and Alcorso (2004) have criticised the adequacy of human capital theory for its failure to take structural factors into account, and how the continued focus on the human capital perspective means that "migrant workers as social beings" (p. 255) have been overlooked.…”