Youth Unemployment and Immigration: A Case Study of Ontario, Canada

Kalsoom Zulfiqar, Sarah Akhtar

Abstract


This study investigates the long-run relationship between youth unemployment and net immigration in Ontario, Canada where youth is defined as ages between 15-24. Two different models are estimated based on different definitions of youth. An Auto regressive Distributed Lag (ARDL) framework is used to establish the direction of causation between the variables. The study concludes a long-run relationship between youth unemployment and immigration. The estimation of the long-term coefficients shows that there exists a long-run relationship between youth unemployment and immigration, irrespective of the age cohort, showing that a 1% increase in immigration will lead to a 0.4% and 0.3% increase in youth unemployment for Model I and Model II respectively.
Youth unemployment is likely to be affected by other factors as well such as government austerity measures, adult unemployment rates and overall economic situation. Therefore this study can be further extended to include various other relevant variables. Given the specificity of our research question, time limitations and data availability these factors were not considered in our research. It can be further expanded to include other Canadian Provinces as well.


Keywords


Immigration; Unemployment; Youth

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References


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DOI: http://dx.doi.org/10.3968/%25x

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