Obtaining the first job commensurate with skills by recent immigrants: Quebec vs. the rest of Canada

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2 Obtaining the first job commensurate with skills by recent immigrants: Quebec vs. the rest of Canada By Nicolas Bastien, Alain Bélanger and Jacques Ledent Socio-Economic Conference 2011 Ottawa, September 26 & 27

3 Plan Context Research objectives Data and method Results General model results Results by region of destination Results by immigration category Results by immigration category and region of destination Conclusion

4 Context Between 1998 and 2008, Canada received an average of immigrants per year Immigrants are more educated than ever before In 2006, more than half of the recent immigrants had a university degree (males 58 %, females 48%) For non-immigrants this proportion was less of a quarter (males 19%, females 23%) Immigrants show increasing difficulties on the Canadian labour market : Lower participation rates Higher unemployment Lower wages

5 Context An additional aspect of the difficult integration of immigrants in the labour market is overqualification In 2008, 60% of immigrants with a university diploma were overqualified, 40 % for non immigrants Overqualification among immigrants is increasing in the last 15 years Boudarbat & Boulet (2007) have shown that immigrant seems to struggle more in the province of Quebec Phythian & al. (2009) have stressed the importance of immigrant class for labour market integration

6 Objectives Study the determinants of the access to a first job commensurate with skills for immigrants Understand how the human capital characteristics used by Canada and Quebec to select skilled immigrant affects the access to a first skilled employment Understand the impact of the actions taken by immigrant to integrate the Canadian labour market Compare the characteristics under study to identify whether or not these have the same effect for: Quebec and the outside Quebec The three immigrant categories

7 Data and Method The Longitudinal Survey of Immigrants to Canada (LSIC) 7716 respondents representing all immigrants who arrived between October 2000 and September 2001, reinterviewed over a 4 year period Our population under study, immigrants with: At minimum a secondary diploma Aged between18 à 65 years old at arrival In total 5,960 labour biographies of immigrants Survival analysis: semi-parametric proportional hazard model (Cox model) Enables to use to their full extent the richness of longitudinal data Allows to use time-varying covariates

8 Data and Method Dependent variable: duration before getting a first skilled job Five skill levels can be derived using the National Occupation Classification (NOC) : 0: Management A: University training required B: College training required C: secondary school diploma or occupation-specific training D: On-the-job training A job is considered commensurate with skills if it requires a skill level at least equal to the highest degree obtained

9 Data and Method Independent variables : 1. Control variables: sex and marital status, visible minority status, destination province, destination in metropolitan area, presence family or friends in Canada, immigrant class 2. Human capital and selection variables : age, highest degree and country where obtained, language proficiency, Canadian experience, work experience and its recognition, arranged employment 3. Actions undertaken once in Canada: moved to another province, works or has works in a non skilled, follows or completed a language course, studies in a educational institution or obtained a degree

10 Results for the general model

11 Risk ratio Generally, immigrants who belong to a visible minority group have less chances of obtaining a qualified job 1,2 0,8 0,8 0,9 0,8 0,8 0,8 0,7 0,6 0,6 0,4 0,2 0,0 White Chinese South-Asian Black Filipino Latin american South-East Asian West Asians/Arabs Others

12 Risk ratio Chance to obtain a qualified job reduces with age at arrival 1,2 1 ns 1,1 ref. 0,8 0,8 0,6 0,6 0,6 0,4 0,4 0,

13 Risk ratio The higher the education level, the more the country of education matters 2,0 1,9 1,5 0,9 0,8 0,5 0,6 0,0 "Western country" Other country "Western country" Other country Secondary diploma University degree College degree

14 Risk ratio Good knowledge of English is an asset while French is not 2,0 1,5 1,5 1,1 0,5 0,0 None English French

15 Risk ratio Canadian experience helps immigrants access to a first job that commensurate skills 2,0 1,5 1,6 0,5 0,0 No Yes

16 Risk ratio Work experience is an important determinant 1,4 1,2 1,2 0,8 0,6 0,6 0,4 0,2 0,0 With work experience Recognized by a prof. Ass. Not recognized by a prof. Ass. None

17 Risk ratio Arranged employment has a big impact 5,0 4,6 4,0 3,0 2,0 0,0 No Yes

18 Risk ratio Moving to another provinces has an impact: cause or consequence? 1,50 1,4 1,25 0 0,75 0,50 0,25 0,00 No Yes

19 Risk ratio Canadian work experience (after arrival) helps 1,50 1,4 1,25 0 0,75 0,50 0,25 0,00 0,1 No Yes No Yes Works in a non qualified employment Has worked in a non qualified employment

20 Risk ratio Language courses: Delays the access but helpful in the end 1,50 1,25 1,3 0 0,75 0,50 0,6 0,25 0,00 No Yes No Yes Follows a language course Completed a a laguage course in the language of the majority

21 Risk ratio Studying in Canada: One possible solution 2,5 2,0 2,0 1,5 0,8 0,5 0,0 No Yes No Yes Studies in a educational institution in Canada Obtained a degree in Canada

22 Results by region of destination

23 .001 Risk functions and risk ratios Region of destination N= Quebec 5054 Rest of Canada 906 Canada 5960 Risk ratio of Quebec Effect Risk ratio Gross 0 Net 0.67*** Num ber of days since arrival Outside Quebec Quebec Immigrants aged at arrival Statistics Canada, Longitudinal Survey of Immigrants to Canada (LSIC)

24 Main differences between immigration destination (Quebec, rest of Canada) Most variables under study have a similar effect in both regions In comparison to Whites, visible minorities do better in Quebec Country of education has a greater importance in Quebec High level of proficiency in English has a positive impact both in in the rest of Canada (1.45) and in Quebec (2.15), while French has no significant effect in either region

25 Results by immigrant category

26 Risk functions: Important effect of immigrant category Immigrant class N= Skilled workers 2180 Family class 3038 Refugees 742 All classes Number of days since arrival Skilled workers (P.A.) Refugee Family class and other dependant Immigrants aged at arrival Statistics Canada, Longitudinal Survey of Immigrants to Canada (LSIC)

27 Risk ratios: Relative underperformance of refugees Gross risk ratio Net risk ratio Skilled workers and business immigrants (P.A.) (Reference) Family class immigrants and other dependant 0.57*** 0.57*** Refugees 0.61*** 0.42***

28 Main differences between immigration categories The positive effect of having lived in Canada before immigrating is significant only for skilled workers Previous work experience has a significant effect only for family class immigrants: Those with no work experience perform significantly less (0.5) than those with work experience who did not try to have their experience recognized Those with recognized work experience perform significantly better (1.9) than the reference group Moving to another province is significant only for skilled workers Having Canadian work experience in an unqualified job is significant only for family and refugee immigrants Obtaining a degree in Canada has no effect for refugees, while it has an important effect for the two other groups

29 Results by region and immigrant category

30 Risk functions skilled workers 76 % more likely to start a study program 26 % more likely to participate to a language course Num ber of days since arrival Outside Quebec Quebec Immigrants aged at arrival Statistics Canada, Longitudinal Survey of Immigrants to Canada (LSIC)

31 Risk functions for family class immigrants Num ber of days since arrival Outside Quebec Quebec Immigrants aged at arrival Statistics Canada, Longitudinal Survey of Immigrants to Canada (LSIC)

32 Risk functions for refugees: Relative underperformance of refugees in Quebec Num ber of days since arrival Outside Quebec Quebec Immigrants aged at arrival Statistics Canada, Longitudinal Survey of Immigrants to Canada (LSIC)

33 Risk ratio for immigrants in Quebec in comparison to those outside of Quebec: Skilled workers in Quebec underperforming more than other immigrants Effect Skilled workers Family class immigrants Refugees Gross ** Net 0.63*** 0.78** 0.53***

34 Conclusions Skilled worker selection grid criterion (human capital) and actions undertaken by immigrant once in Canada have an important effect of the access to a first qualified employment Overall, access to a job commensurate with skills is similar in Quebec and elsewhere in Canada. However, when controlling for characteristics differences appear. Given their characteristics, Quebec s immigrants should be performing much better. This is particularly true for immigrants from the skilled worker category.

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