Abstract
This study exploits policy differences across Canadian provinces to analyze the effects of skilled immigration on the unemployment rate. In 2005, Ontario signed its first Provincial Nominee Program agreement. In 2007, Ontario adopted and began to utilize the Provincial Nominee Program, a program designed to fill labour shortages and meet economic demands. To analyze the impact of such a policy, Ontario is compared to Quebec, which has not adopted the Provincial Nominee Program. This report utilizes ARIMAX models to find the impact of this skilled labour program on unemployment levels. The results demonstrate that the introduction of the Provincial Nominee Program in Ontario has led to a statistically significant decline in the unemployment rate. Hence, this inflow of skilled labour provides a net benefit, which has implications for more liberal policies regarding skilled migration.
Published Version
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