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Macroeconomic Impacts of Canadian Immigration: Results from a Macro-Model

Author

Listed:
  • Dungan, Peter

    (University of Toronto)

  • Fang, Tony

    (Memorial University of Newfoundland)

  • Gunderson, Morley

    (University of Toronto)

Abstract
We use a macro-econometric forecasting model to simulate the impact on the Canadian economy of a hypothetical increase in immigration. Our simulations generally yield positive impacts on such factors as real GDP and GDP per capita, aggregate demand, investment, productivity, and government expenditures, taxes and especially net government balances, with essentially no impact on unemployment. This is generally buttressed by conclusions reached in the existing literature. Our analysis suggests that concern should be with respect to immigrants themselves as they are having an increasingly difficult time assimilating into the Canadian labour market, and new immigrants are increasingly falling into poverty.

Suggested Citation

  • Dungan, Peter & Fang, Tony & Gunderson, Morley, 2012. "Macroeconomic Impacts of Canadian Immigration: Results from a Macro-Model," IZA Discussion Papers 6743, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6743
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    References listed on IDEAS

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    Cited by:

    1. Nusrate Aziz & Arusha Cooray & Wing Leong Teo, 2021. "Do immigrants’ funds affect the exchange rate?," The World Economy, Wiley Blackwell, vol. 44(2), pages 560-585, February.
    2. Şerife Genç İleri, 2019. "Selective immigration policy and its impacts on Canada's native‐born population: A general equilibrium analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(3), pages 954-992, August.
    3. Fang, Tony & Xiao, Na & Zhu, Jane & Hartley, John, 2022. "Employer Attitudes and the Hiring of Immigrants and International Students: Evidence from a Survey of Employers in Canada," IZA Discussion Papers 15226, Institute of Labor Economics (IZA).
    4. Brahim Boudarbat & Idossou Marius Adom, 2023. "Les minorités visibles nées au Canada: l’angle mort des politiques d’intégration au marché du travail," CIRANO Project Reports 2023rp-27, CIRANO.
    5. Asadul Islam & Faridul Islam & Chau Nguyen, 2017. "Skilled Immigration, Innovation, and the Wages of Native-Born Americans," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 459-488, July.
    6. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    7. Morton Beiser & Feng Hou, 2014. "Chronic health conditions, labour market participation and resource consumption among immigrant and native-born residents of Canada," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 59(3), pages 541-547, June.
    8. Christopher Worswick, 2013. "Improving Immigrant Selection: Further Changes Are Required Before Increasing Inflows," e-briefs 157, C.D. Howe Institute.

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    More about this item

    Keywords

    FOCUS Model; immigration; macroeconomic impact; Canada;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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