Research on Immigration and Integration in the Metropolis

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Research on Immigration and Integration in the
Metropolis www.riim.metropolis.net
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Disequilibrium on the Canada-Mexico Labour
Markets A case for expanding Canadas Temporary
foreign workers Program?
Don J . DeVoretz Professor, Simon Fraser
University Canada Co-Director RIIM,Metropolis
Project Canada don.devoretz_at_sfu.ca Presented at
Labour Market Interdependence in North America
Challenges and Opportunities of an Aging
Population November 13, 2006 Mexico City
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Expanding Canadas 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?

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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?

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Dynamic CaseNannies Demand Curve Shifts and
Reservation Wage Rises

• EquilibriumPre-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

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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?

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THUMB.ORG Temporary 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

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Conclusions

• Limited Opportunities in unskilled market
• Expansive possibilities in Skilled market
• Under proper structure all three can gain
• No need for govt interference
• Many Details to be worked out
• Conversion rights
• Security
• Bonding of agents