Asymmetric Information and the Discount on Foreign-Acquired Degrees in Canada

	NHRI (for native-born workers)

	Native-born workers			Immigrants (Canadian educated)			Immigrants (internationally educated)
Degree	1.0–0.2	0.2–0.0	Total	1.0–0.2	0.2–0.0	Total	1.0–0.2	0.2–0.0	Total
Apprenticeship	38.1%	61.9%	883,215	36.3%	63.7%	104,895	23.9%	76.1%	47,865
Trades	46.8%	53.2%	449,475	41.8%	58.2%	66,635	26.2%	73.8%	30,210
College <1 year	38.8%	61.2%	301,460	38.1%	61.9%	51,700	23.5%	76.5%	11,375
College 1–2 years	41.5%	58.5%	1,199,525	39.7%	60.3%	173,530	22.6%	77.4%	52,470
College >2 years	49.5%	51.5%	916,480	44.3%	55.7%	147,055	23.6%	76.4%	78,770
University <bachelors	44.2%	56.8%	430,945	37.9%	62.1%	115,940	20.1%	79.9%	105,135
Bachelors	47.3%	53.7%	1,504,535	42.2%	57.8%	279,505	24.3%	75.7%	270,605
University >bachelors	57.2%	43.8%	220,400	51.1%	48.9%	44,485	26.0%	74.0%	51,915
Degrees in medicine	77.6%	23.4%	20,605	70.0%	30.0%	6,360	26.8%	73.2%	13,355

Total	44.9%	55.1%	5,926,640	41.3%	58.7%	990,105	23.7%	76.3%	661,700

The effect of YSM on the wage gap between native-born and immigrant workers by NHRIC, education degrees, and location of study – 2006 and 2011

		OLS				SWF
	2006		2011		2006		2011
	Coefficient	SE	Coefficient	SE	Coefficient	SE	Coefficient	SE
Trades X
I X CE X (NHRIC = 0) X YSM	0.007	0.002	0.002	0.003	0.004	0.002	0.003	0.002
I X CE X (NHRIC = 1) X YSM	0.004	0.002	0.003	0.002	0.004	0.002	0.001	0.002
I X FE X (NHRIC = 0) X YSM	0.003	0.007	0.005	0.006	0.002	0.003	0.005	0.004
I X FE X (NHRIC = 1) X YSM	0.016	0.014	-0.004	0.005	0.014	0.005	0.000	0.005
College and below
bachelor’s X
I X CE X (NHRIC = 0) X YSM	0.004	0.001	0.002	0.001	0.003	0.001	0.002	0.001
I X CE X (NHRIC = 1) X YSM	0.003	0.002	0.000	0.002	0.003	0.001	0.002	0.001
I X FE X (NHRIC = 0) X YSM	0.011	0.002	0.006	0.001	0.010	0.001	0.004	0.001
I X FE X (NHRIC = 1) X YSM	0.012	0.003	-0.001	0.004	0.009	0.002	-0.002	0.002
Bachelor’s X
I X CE X (NHRIC = 0) X YSM	0.008	0.001	0.006	0.001	0.007	0.001	0.005	0.001
I X CE X (NHRIC = 1) X YSM	0.004	0.001	0.004	0.001	0.003	0.001	0.004	0.001
I X FE X (NHRIC = 0) X YSM	0.013	0.002	0.010	0.002	0.012	0.001	0.007	0.001
I X FE X (NHRIC = 1) X YSM	0.009	0.005	0.004	0.003	0.006	0.002	0.001	0.003
Graduate X
I X CE X (NHRIC = 0) X YSM	0.010	0.001	0.008	0.001	0.007	0.001	0.008	0.001
I X CE X (NHRIC = 1) X YSM	0.006	0.002	0.004	0.002	0.005	0.001	0.004	0.002
I X FE X (NHRIC = 0) X YSM	0.018	0.002	0.009	0.002	0.016	0.001	0.009	0.001
I X FE X (NHRIC = 1) X YSM	0.014	0.006	0.003	0.005	0.014	0.003	0.005	0.003

The wage gap across workers by nativity, NHRIC, education degrees, and location of study – 2006 and 2011

	OLS				SWF
	2006		2011		2006		2011
Trades X	Coefficient	SE	Coefficient	SE	Coefficient	SE	Coefficient	SE

N X CE X (NHRIC = 1)	Base				Base
N X CE X (NHRIC = 0)	-0.146	0.018	-0.110	0.024	-0.088	0.016	-0.126	0.015
I X CE X (NHRIC = 0)	-0.405	0.081	-0.192	0.083	-0.272	0.059	-0.182	0.070
I X CE X (NHRIC = 1)	-0.142	0.063	-0.165	0.074	-0.125	0.073	-0.077	0.068
I X FE X (NHRIC = 0)	-0.386	0.115	-0.378	0.126	-0.301	0.059	-0.333	0.077
I X FE X (NHRIC = 1)	-0.637	0.296	-0.071	0.075	-0.486	0.102	-0.055	0.100

College and below bachelor’s X
N X CE X (NHRIC = 1)	Base				Base
N X CE X (NHRIC = 0)	-0.134	0.008	-0.061	0.012	-0.090	0.007	-0.083	0.008
I X CE X (NHRIC = 0)	-0.294	0.030	-0.147	0.034	-0.219	0.020	-0.103	0.023
I X CE X (NHRIC = 1)	-0.120	0.036	-0.279	0.247	-0.110	0.032	0.020	0.036
I X FE X (NHRIC = 0)	-0.478	0.027	-0.313	0.030	-0.396	0.019	-0.247	0.022
I X FE X (NHRIC = 1)	-0.345	0.063	-0.055	0.045	-0.239	0.040	0.039	0.045

Bachelor’s X
N X CE X (NHRIC = 1)	Base				Base
N X CE X (NHRIC = 0)	-0.099	0.010	-0.064	0.012	-0.090	0.009	-0.114	0.009
I X CE X (NHRIC = 0)	-0.322	0.030	-0.222	0.034	-0.287	0.024	-0.259	0.024
I X CE X (NHRIC = 1)	-0.117	0.036	-0.083	0.037	-0.105	0.035	-0.053	0.035
I X FE X (NHRIC = 0)	-0.595	0.025	-0.421	0.027	-0.534	0.017	-0.430	0.020
I X FE X (NHRIC = 1)	-0.341	0.050	-0.199	0.039	-0.286	0.031	-0.157	0.037

Graduate X
N X CE X (NHRIC = 1)	Base				Base
N X CE X (NHRIC = 0)	-0.042	0.015	-0.049	0.018	-0.049	0.012	-0.072	0.012
I X CE X (NHRIC = 0)	-0.360	0.036	-0.291	0.038	-0.275	0.026	-0.179	0.026
I X CE X (NHRIC = 1)	0.109	0.061	-0.137	0.052	-0.132	0.039	-0.029	0.039
I X FE X (NHRIC = 0)	-0.636	0.032	-0.456	0.038	-0.571	0.021	-0.372	0.023
I X FE X (NHRIC = 1)	-0.143	0.047	-0.241	0.047	-0.352	0.035	-0.191	0.041

SWF estimates of the wage gap across workers by nativity, NHRIC, education degrees, and location of study with heteroskedastic inefficiency – 2006 and 2011

	2006		2011
	Coefficient	SE	Coefficient	SE
Trades X
N X CE X (NHRIC = 1)		Base
N X CE X (NHRIC = 0)	-0.090	0.014	-0.135	0.011
I X CE X (NHRIC = 0)	-0.278	0.061	-0.214	0.050
I X CE X (NHRIC = 1)	-0.145	0.067	-0.137	0.047
I X FE X (NHRIC = 0)	-0.405	0.064	-0.335	0.057
I X FE X (NHRIC = 1)	-0.193	0.108	-0.105	0.069
College and below bachelor’s X
N X CE X (NHRIC = 1)		Base
N X CE X (NHRIC = 0)	-0.096	0.006	-0.083	0.008
I X CE X (NHRIC = 0)	-0.178	0.016	-0.103	0.023
I X CE X (NHRIC = 1)	-0.080	0.026	0.020	0.036
I X FE X (NHRIC = 0)	-0.331	0.016	-0.247	0.022
I X FE X (NHRIC = 1)	-0.090	0.032	0.039	0.045
Bachelor’s X
N X CE X (NHRIC = 1)		Base
N X CE X (NHRIC = 0)	-0.070	0.007	-0.135	0.007
I X CE X (NHRIC = 0)	-0.267	0.023	-0.283	0.018
I X CE X (NHRIC = 1)	-0.082	0.033	-0.099	0.026
I X FE X (NHRIC = 0)	-0.464	0.018	-0.504	0.015
I X FE X (NHRIC = 1)	-0.298	0.031	-0.218	0.028
Postsecondary X
N X CE X (NHRIC = 1)		Base
N X CE X (NHRIC = 0)	-0.039	0.010	-0.107	0.009
I X CE X (NHRIC = 0)	-0.237	0.024	-0.299	0.019
I X CE X (NHRIC = 1)	-0.149	0.034	-0.142	0.027
I X FE X (NHRIC = 0)	-0.487	0.021	-0.504	0.017
I X FE X (NHRIC = 1)	-0.323	0.035	-0.298	0.030

Average marginal effects of visible minority status on E(vi) and V(vi) (%) – 2006 and 2011

	2006		2011
	E(v)	V(v)	E(v)	V(v)
South Asian	7.00	2.07	11.54	4.24
Chinese	5.35	1.83	8.06	2.96
Black	1.13	0.37	2.99	1.10
Filipino	-2.64	-1.91	-6.67	-2.45
Latin American	6.04	1.22	5.81	2.13
Arab	16.38	4.93	8.07	2.96
Southeast Asian	2.59	1.60	4.26	1.57
West Asian	19.97	5.62	20.90	7.68
Korean	12.13	4.59	20.55	7.55
Japanese	7.22	1.78	2.74	1.01
Visible minority, n.i.e	-0.49	-8.03	3.62	1.33
Multiple visible minority	3.35	0.45	4.57	1.68

eISSN:: 2520-1786
Język:: Angielski

Częstotliwość wydawania:: Volume Open
Dziedziny czasopisma:: Business and Economics, Political Economics, Microeconomics, Macroecomics, Economic Policy, Mathematics and Statistics for Economists, Econometrics

Kanał RSS czasopisma

Asymmetric Information and the Discount on Foreign-Acquired Degrees in Canada

Data publikacji: 27 lip 2019

Zakres stron: -

DOI: https://doi.org/10.2478/izajodm-2019-0002

Słowa kluczowerisk aversion, return to education, occupational mismatch

© 2019 Yigit Aydede and Atul Dar, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 Public License.

Figure 1

Distribution of native-born and immigrant workers by NHRI and education degrees – 2006 (weighted)

The effect of YSM on the wage gap between native-born and immigrant workers by NHRIC, education degrees, and location of study – 2006 and 2011

The wage gap across workers by nativity, NHRIC, education degrees, and location of study – 2006 and 2011

SWF estimates of the wage gap across workers by nativity, NHRIC, education degrees, and location of study with heteroskedastic inefficiency – 2006 and 2011

Average marginal effects of visible minority status on E(vi) and V(vi) (%) – 2006 and 2011

Słowa kluczowe
risk aversion, return to education, occupational mismatch