This is a table of average earnings for various immigration cohorts as well as native-born Canadians for 2010 and 2015. These values are expressed in 2015 real dollars.
| Average Earnings by Innnigrant Cohort | |||||
| 2010 | 2010 | 2015 | 2015 | ||
| Cohort | Label | YSM | Earnings (S) | YSM | Earnings ($) |
| Native-born | Native | N/A | 73,915 | N/A | 80,245 |
| 1955-1959 | 1M5559 | 52.5 | 97,361 | 57.5 | 97,212 |
| 1960-1964 | 1M6064 | 47.5 | 91,822 | 52.5 | 93,156 |
| 1965-1969 | 1M6569 | 42.5 | 88,610 | 47.5 | 106,552 |
| 1970-1974 | 1M7074 | 37.5 | 88,392 | 42.5 | 93,163 |
| 1975-1979 | 1M7579 | 32.5 | 85,919 | 37.5 | 97,756 |
| 1980-1984 | 1M8084 | 27.5 | 79,911 | 32.5 | 81,500 |
| 1985-1989 | 1M8589 | 22.5 | 70,143 | 27.5 | 78,100 |
| 1990-1994 | 1M9094 | 17.5 | 64,342 | 22.5 | 69,033 |
| 1995-1999 | 1M9599 | 12.5 | 68,821 | 17.5 | 73,976 |
| 2000-2004 | IM0004 | 7.5 | 66,971 | 12.5 | 74,907 |
| 2005-2009 | IM0509 | 2.5 | 58,623 | 7.5 | 67,780 |
| 2010-2014 | IM1014 | 2.5 | 60,596 | ||
| NOTE: "YSM" refers to the average years since migration. |
This is a table of average earnings for various immigration cohorts as well as native-born Canadians for 2010 and 2015. These values are expressed in 2015 real dollars.
A) Calculate the cross-sectional entry effect for the IM0509 cohort. Interpret what the number means.
B) Using the table from (a). Use the 2010 cross-section to estimate the effects on earnings of being in Canada for an additional 5 years for the IM0004 cohort. That is estimate the effect of being in Canada for 12.5 years rather than 7.5 years. Use this to predict earnings for the IM0004 cohort in 2015. How does your estimate compare to their actual earnings?
C) Can you come up with a better estimate of the earnings assimilation for the IM0004 cohort? Explain/calculate this estimate and compare it to your answer for (b) and suggest/explain why these numbers may be different.
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