Immigration and theWelfare State in Canada: Growing Conflicts, Constructive Solutions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 PART I: The Problem: Immigration and the Welfare State . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PART II: Causes of Poor Average Economic Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 PART III: Towards a New Immigrant Selection System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Appendix A: Immigrant Earnings and Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Appendix B: Comparison of Australian and Canadian Immigration Policies . . . . . . . . . . . 57 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 NUMBER 84 / SEPTEMBER 2005 A FRASER INSTITUTE OCCASIONAL PAPER Public Policy Sources is published periodically throughout the year by The Fraser Institute, Vancouver, B.C., Canada. The Fraser Institute is an independent Canadian economic and social research and educational organization. It has as its objective the redirection of public attention to the role of competitive markets in providing for the well-being of Canadians. Where markets work, the Institute’s interest lies in trying to discover prospects for improvement. Where markets do not work, its interest lies in finding the reasons. Where competitive markets have been replaced by government control, the interest of the Institute lies in documenting objectively the nature of the improvement or deterioration resulting from government intervention. The work of the Institute is assisted by an Editorial Advisory Board of internationally renowned economists. The Fraser Institute is a national, federally chartered non-profit organization financed by the sale of its publications and the tax-deductible contributions of its supporters. For information about Fraser Institute membership, please call the Development Department in Vancouver at (604) 688-0221, or from Toronto: (416) 363-6575, or from Calgary: (403) 216-7175. Editor & Designer: Kristin McCahon For media information, please contact Suzanne Walters, Director of Communications, (604) 714-4582 or e-mail [email protected] To order additional copies, write or call The Fraser Institute, 4th Floor, 1770 Burrard Street, Vancouver, B.C., V6J 3G7 Toll-free order line: 1-800-665-3558; Telephone: (604) 688-0221, ext. 580; Fax: (604) 688-8539 In Toronto, call (416) 363-6575, ext. 580; Fax: (416) 601-7322 In Calgary, call (403) 216-7175; Fax: (403) 234-9010 Visit our Web site at http://www.fraserinstitute.ca Copyright82005 The Fraser Institute. All rights reserved. No part of this monograph may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. The author of this study has worked independently and opinions expressed by him are, therefore, his own, and do not necessarily reflect the opinions of the supporters or trustees of The Fraser Institute. Printed and bound in Canada. ISSN 1206-6257; ISBN 0-88975-224-9 Date of issue: September 2005