Job Displacement Effects of Immigration on Canadian-born: A Microeconomic Perspective

Asadul Islam

 

Abstract

This paper examines the job displacement effects of Canadian-born workers due to immigration in Canada. It considers both substitutability and complementarity relationships between Canadian-born workers and immigrants. These relationships have been examined by estimating a system of wage earnings equations involving Canadian-born, recent immigrant and older immigrant using a Generalized Leontief Production Function (GLPF). The coefficients estimated from GLPF have been used to estimate the Hicksian elasticity of complementarity. The estimated Hicksian elasticities suggest, on the aggregate, that there is no job displacement of native-born workers by immigration. However, there are some job displacement effects by industry.

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