The Daily — Study: Immigrants’ initial firm allocation and earnings growth, 1999 to 2012

This study suggests limited mobility:

After arriving in Canada, immigrants whose first paid employment was in high-paying firms fared better in both the short and long-term than their counterparts whose first paid employment was in lower paying firms.

A new study uses Statistics Canada’s new Canadian Employer–Employee Dynamics Database to examine the differences in the earnings trajectories of immigrants, according to their initial allocation to low-, medium-low, or high-paying firms.

The benefit of initial employment in high-paying firms remained even after accounting for individual demographic and human capital factors.

For example, immigrant men first employed in low-paying firms earned almost $11,000 less in the first year after landing than their counterparts in high-paying firms. After 14 years in Canada, the earnings gap between these groups was $8,600 despite employment transitions during the intervening years. Similarly, the earnings difference between immigrant women initially employed in low-paying firms and those initially employed in high-paying firms was approximately $6,000 in the first year after landing and $5,500 in the 14th year after landing.

Furthermore, the returns of earnings to educational attainment and knowledge of English or French were larger in both the short and long-term among immigrants initially employed in high-paying firms than among those first employed in low-paying firms.

Source: The Daily — Study: Immigrants’ initial firm allocation and earnings growth, 1999 to 2012