Does having foreign education matter? An analysis of the interaction between education and origin of degree in predicting income

In Canada, immigrants have both increasing education levels and decreasing earnings. The devaluation of foreign education in the Canadian labour market is one of the explanations of this paradox. The present study uses 2002 Ethnic Diversity Survey data and examines the value attributed to foreign education for immigrants at different stages of integration. I distinguish between immigrants living in Canada for less and more than 10 years, and compare their economic performance with that of Canadian-born. Results of regression analyses indicate that examining the value of foreign education for immigrants at various stages of integration is pertinent. While immigrants at all stages of integration experience devaluation, it is more visible for those living in Canada for more than 10 years. Immigrants from developing countries experience the most acute devaluation. The findings have implications for the current 'point system' used to select immigrants to Canada and immigrants' social management.