class: center, middle, inverse, title-slide # Meeting: A.B. ### Hans Martinez ### Dec 07, 2021 --- ## Objective - Work-in-progress idea - Feasibility - Data --- layout: false class: inverse center middle # Immigrant job market (IJB) and productivity losses in Canada --- layout: true ### IJB + productivity losses --- * Immigrants are critical for the economic development of Canada by filling in the gaps in the labor market. By 2036, 30% of pop. will be immigrants .small[(Mortency et al., 2017)] * There is a positive association between the share of immigrants in a firm and the firm's productivity. High-skilled immigrants are associated with higher firm profits .small[(Gu et al., 2020)], and innovation .small[(Blit et al., 2021)]. * However, immigrants suffer unemployment and underemployment .small[(Adamuti-Trache, 2016)]. --- * On the other hand, Firms face higher costs when hiring an immigrant (non-PR, TFW): LMIA ($1000, complex and inconsistent process, long time) .small[(HC, 2016)] * Firms believe native candidates are more competitive than foreign; however, SIEs have more education and experience on average .small[(Chhinzer and Oh, 2021)]. * Likewise, foreign work experience is discounted, while Canadian experience is more valued .small[(Chhinzer and Oh, 2021)]. * Furthermore, employers do not actively recruit immigrants (PR, SIE), cannot assess foreign credentials, and do not evaluate immigrants' competencies .small[(Chhinzer and Oh, 2021)]. * Firm side remains understudied. --- * **Question**: Frictions on both sides of the Canadian job market for immigrants (TFW and SIE) negatively affect firms' productivity. How significant are these losses? Can we measure them? * **Data**: StatsCan employer-employee + IRCC linked databases * **Approach**: 1. Search model to calibrate frictions and recover counterfactual matches. 2. 2SGMM procedure for Production function (GNR) + productivity monotonic in immigrant skills. --- layout: false class: center, middle # Thanks!