The worth of immigrants’ educational credentials in the Canadian labour market

Overview

Abstract (English)

The literature has reported that immigrants’ foreign credentials have been undervalued in Canada. However, the extent to which immigrants’ credentials attained in different world regions have been valued or undervalued is unclear. This study uses data from the 2002 Ethnic Diversity Survey to assess the worth of immigrants’ educational credentials in Canada, taking into account different fields of study. The major findings indicate that there were significant gross and net earnings disparities among immigrant men and women with educational credentials attained in different world regions. Foreign credentials from the US and Northern and Western Europe of immigrant men and those from the USA and all parts of Europe of immigrant women had an earnings advantage compared to immigrants whose credentials were from Canada. The results also suggest that immigrant men with foreign credentials in health fields and in commerce, management and business administration had the greatest difficulties to getting their foreign credentials recognized. Similar to immigrant men, foreign education of immigrant women in the fields of commerce, management and business administration as well as in natural, applied sciences and engineering was the most devaluated compared to women with Canadian credentials. In addition, both immigrant men and women with education from the USA and Northern and Western Europe irrespective of the field of study had the best chance to enjoy an earnings premium over their counterparts with Canadian education. The relationship between education and earnings among Canadian immigrants is further explained using a political economy perspective of racialization.

Abstract (French)

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