The earnings of immigrants and the quality adjustment of immigrant human capital

Abstract

The quality dimension of immigrant human capital has received little attention in theeconomic assimilation literature. The objective of this paper is to demonstrate howhuman capital acquired in different source countries may be adjusted according to itsquality in the Canadian labor market. This is achieved by deriving quality-adjustmentindices using data from the 2001 Canadian census. These indices are then used toexamine the role of schooling quality in explaining differential returns to schoolingand over-education rates by country-of-origin. The key finding is that accounting forschooling quality virtually eliminates native-immigrant gaps in returns to schoolingand the incidence of over-education. The quality of human capital is important forunderstanding the economic integration of immigrants. JEL Codes: F22; I2; J15; J31