Dynamic Causal Effects of Post-Migration Schooling on Labour Market Transitions

The government of Canada, through its Skilled Worker Program, selects immigrants based on their education, work experience, knowledge of English and/or French, and other factors. This paper analyzes the employment dynamics of this group of work-ready immigrants in Quebec. We further study the impact of domestic education on future spells of employment and unemployment.  We distinguish between “Qualified” and “Unqualified” jobs (corresponding or not corresponding to qualification), education and unemployment in a multiple-spells and multiple-states model.  Our results indicate that immigrants from well-off countries have no need to further invest in domestic education. Highly qualified immigrants from poorer countries, however, benefit greatly from such training in the long run as it eases their transitions out of unemployment and out of unqualified jobs.