and Some Observations on Immigration Policy` Serge Coulombe Department of Economics and Research Group on the Economy of Immigration Commentary on Patrick Grady `An Analysis of the Poor Performance of Recent Immigrants and Some Observations on Immigration Policy` For presentation at the 45th Annual Conference of the Canadian Economics Association, University of Ottawa, June 4, 2011

The paper Read like a novel (not a thriller though) Put the emphasis of immigrant earning gap on: visible minority, language skills, and their country of origin. Underline graphically the positive and significant relationship between per capita GDP in the country of origin and immigrant earning in Canada (see Coulombe, Grenier, and Nadeau, 2011 for an analysis of this).

Portability versus quality If human capital in not portable (but of the same quality) across country, why should people migrate? Hanushek and Woessmann (2008) and Coulombe and Tremblay (2009) shows that country of origin effect are associated with skill differences (see following graph). Coulombe, Grenier, and Nadeau (2011)

Sources: Coulombe and Tremblay, Regional Studies, 2009

Policy analysis diagnostic Grady is right on the spot withn the diagnostic: 1) Immigration policy-makers do not like to acknowledge that only a small proportion (17 ½%) of immigrants is actually fully selected on the basis an assessment of their skills(?) and a large proportion from family-class dependents, sponsored relatives of skilled immigrants or refugees. 2) the relatively poor performance of immigrants from the developing world.

Quality of a higher education obtained in North America or Europe should be specifically taken into consideration in improving the selection of immigrants. Given the poor return to foreign work experience, immigrant should be admitted at a young age. (International students the best candidates)

Page 39. Moreover, Quebec still administers its own immigration program and all the other provinces and two of the three territories have Provincial Nominee Programs that allow them to participate in selecting immigrants. This leads to some immigrants being admitted who might not otherwise qualify and spreads them across the country in a way that can undermine their labour market performance and contribute to the growth of federal transfer programs. Grady continues on page 40 with the growth of federal transfer to Atlantic Canada and Quebec because of their inability in selecting immigrant. Grady’s conjecture rejected by facts: Coulombe and Tremblay (2009, Regional Studies) ‘t is shown that international immigration tends to reduce provincial disparities (skills) whereas interprovincial migration tends to increase them. The first effect dominates.`

Adapted from Coulombe and Tremblay (2009)