Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222174
Authors: 
Aydede, Yigit
Dar, Atul A.
Year of Publication: 
2019
Citation: 
[Journal:] IZA Journal of Development and Migration [ISSN:] 2520-1786 [Volume:] 10 [Year:] 2019 [Issue:] 1 [Pages:] 1-22
Abstract: 
A growing wage gap between immigrant and native-born workers is well documented and is a fundamental policy issue in Canada. It is quite possible that wage differences, commonly attributed to the lower quality of foreign credentials or the deficiency in the accreditation of these credentials, merely reflect lower wage offers that immigrant workers receive due to risk aversion among local firms facing an elevated degree of asymmetric information. Using the 2006 and 2011 population censuses, this paper empirically investigates the effects of wage bargaining in labor markets on the wage gap between foreign- and Canadian-educated workers. Our results imply that a significant part of the wage gap between foreign-educated and Canadian-educated immigrant (and native-born) workers is not driven by the employers' risk aversion but by differences in human capital endowments and occupational matching quality.
Subjects: 
risk aversion
return to education
occupational mismatch
JEL: 
J6
J15
J61
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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