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Research on Immigration and Integration in the Metropolis riimtropolis

Research on Immigration and Integration in the Metropolis www.riim.metropolis.net. Disequilibrium on the Canada-Mexico Labour Markets: A case for expanding Canada’s Temporary foreign workers Program?. Don J . DeVoretz Professor, Simon Fraser University Canada

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Research on Immigration and Integration in the Metropolis riimtropolis

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  1. Research on Immigration and Integration in the Metropolis www.riim.metropolis.net

  2. Disequilibrium on the Canada-Mexico Labour Markets: A case for expanding Canada’s Temporary foreign workers Program? Don J. DeVoretz Professor, Simon Fraser University Canada Co-Director RIIM,Metropolis Project Canada don.devoretz@sfu.ca Presented at Labour Market Interdependence in North America: Challenges and Opportunities of an Aging Population November 13, 2006 Mexico City

  3. Expanding Canada’s Temporary Foreign Worker Program ? • Should Canada expand its Seasonal Agriculture Workers Program (SAWP) to include more sectors, occupations and/or regions? • Should Canada expand its low-skilled temporary foreign worker policy to sectors, occupations and/or regions? • Should Canada expand its high skilled temporary foreign worker policy?

  4. Normal Case • Displacement equals OA • Wage compression Wc to Wc’ • Who compensates lost workers? • Who compensates lost wages? • Who decides on optimal number of migrant admissions? • Ab or ad?

  5. Dynamic Case:Nannies Demand CurveShifts and Reservation Wage Rises • Equilibrium:Pre-Demand Shift • OA Canadians working at Wcad • 100 % Canadian labour market • Demand Shift • Wages rise from WCad to WUS • Reservation Wage Rised for Canadians • All New Hires Foreign Born

  6. How to Evaluate Impact Under 2 Scenarios ? • Net Benefit Rule: Govt arbitrarily decides on AB • Case A: Ambiguous • Why allow AB why not AD or Zero ? • 2 Winners and 1 loser • Case B: Admit Temporary Workers • All gain to foreign workers and Employers • However, foreign workers set min wage • Implementation Problems of Net Benefit Rule: • Where is individual worker ?Property Right on Job • How do know supply elasticities for • every market- every individual?

  7. THUMB.ORGTemporary Hiring Unskilled Monster Board • CIC Set target AB in old Regime • Now Agents in Auction Market Decide if AB is Equilibrium : • Revenue Canada: • Provides voucher for job - based upon previous T4 • Collects turn-over fee: bonding, vetting and Board • Cost free to Canadian tax payer • Daily quotes of terms for all successful bids and offers • Workers: Voucher: • sell job for a fee or retain job • Tenure-less than 365 days

  8. Conclusions: • Limited Opportunities in unskilled market • Expansive possibilities in Skilled market • Under proper structure all three can gain • No need for gov’t interference • Many Details to be worked out • Conversion rights • Security • Bonding of agents

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