Congratulations! You have just been appointed a special advisor to the prime minister on immigratio policy. Unfortunately for you, this is a very controversial matter. In a nutshell, you are to make a case for or against continuing Canada's existing set of immigration policies, which are the most liberal in the industrialized world.
• First, you should provide some background for the report. How have the patterns of immigration changed over the past 40 years? There has been a major evolution on the source countries and the "class" composition of immigrants. You should include in your response a description of the point system.
• Here comes the sensitive part. Some native-born Canadians believe that immigrants displace the or put downward pressure on their wages. Using supply-and-demand analysis and the appropriate graphs, explain in theory how this might occur. You should mention the question of whether immigrant labour tends to be complementary to or substitutable for native labour.
• The issue of actual impact can only be resolved by recourse to empirical analysis. One of the many empirical challenges is the fact that the counterfactual case - what the labour market equilibriu would have been in the absence of immigration - is not observed. Explain why this factor is important, and mention the potential endogeneity of the immigration effect.
• What is the central thrust of most of the empirical research that has been carried out in North America? Are the fears of some native Canadian workers justified?

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The Answer of Congratulations! You have just been appointed a special advisor to the prime minister on immigratio policy. Unfortunately for you, this is a very controversial matter. In a nutshell, you are to make a case for or against continuing Canada's existing set of immigration policies, which are the most liberal in the industrialized world.
• First, you should provide some background for the report. How have the patterns of immigration changed over the past 40 years? There has been a major evolution on the source countries and the "class" composition of immigrants. You should include in your response a description of the point system.
• Here comes the sensitive part. Some native-born Canadians believe that immigrants displace the or put downward pressure on their wages. Using supply-and-demand analysis and the appropriate graphs, explain in theory how this might occur. You should mention the question of whether immigrant labour tends to be complementary to or substitutable for native labour.
• The issue of actual impact can only be resolved by recourse to empirical analysis. One of the many empirical challenges is the fact that the counterfactual case - what the labour market equilibriu would have been in the absence of immigration - is not observed. Explain why this factor is important, and mention the potential endogeneity of the immigration effect.
• What is the central thrust of most of the empirical research that has been carried out in North America? Are the fears of some native Canadian workers justified?

Congratulations! You Have Just Been Appointed a Special Advisor to the Prime