Highly educated immigrant workers in the United States perform better in employment and compensation than their counterparts in Canada, according to a new study by the Fraser Institute.
In Canada, highly educated immigrants earn 16.0% less than comparable native-born Canadians and have a 9.5% lower rate of employment. By contrast, highly educated immigrants in the United States have a 1.2% higher rate of employment than native-born Americans and earn 8.0% more.
The study compared the economic performance of native-born workers to immigrants in both countries with respect to employment levels and compensation.
“The evidence suggests that the U.S. offers greater opportunities and rewards than Canada, and therefor is better positioned to attract the most productive highly-educated and skilled immigrants,” said Steve Globerman, senior fellow at the Fraser Institute and co-author of the study.
Competition for talent
Developed countries compete with one another to attract educated immigrants, particularly those trained in STEM fields, according to the study. Highly educated immigrants make important economic contributions through promoting innovation and entrepreneurship.
“Highly educated immigrants make important economic contributions to the countries they emigrate to, notably through promoting innovation and entrepreneurship–which helps to explain why developed countries compete with one another to attract educated immigrants, particularly those trained in STEM (Science, Technology, Engineering and Math) fields,” said Jock Finlayson, senior fellow with the Fraser Institute and co-author of the study.
Policy implications
For Canada to compete more successfully for global talent, policies to improve immigrant selection and to create a more dynamic and productive economy will be necessary, according to Globerman.
The study is titled “The Gap in the Labour Market Performance of Highly Educated Immigrants in Canada Relative to the U.S.- and How to Narrow It.”
The Fraser Institute is an independent public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax, and Montreal.