Skill Utilization and Earnings of STEM-Educated Immigrants in Canada: Differences by Degree Level and Field of Study. Analytical Studies Branch Research Paper Series

In Canada, immigrants represented more than half of the population in the prime working ages with at least a bachelor's degree in the science, technology, engineering, and mathematics (STEM) fields of study in 2016. They accounted for three-quarters of engineering and computer science graduates with a master's or doctorate degree. This paper examines the skill utilization and earnings of employed STEM-educated immigrants by field of study and degree level. Compared with the Canadian-born with similar levels of education and in similar fields of study, immigrants with a bachelor's degree had considerably lower skill utilization rates and earnings outcomes than those of doctoral degree holders. This is mostly because immigrant doctoral graduates are more likely to be educated in a Western country. By field of study, immigrant engineering graduates, particularly at the bachelor's level, had relatively weaker skill utilization rates and earnings outcomes; immigrant computer science graduates did somewhat better. The slightly more than half of STEM-educated immigrants who did not find a STEM job had the weakest skill utilization rates and earnings outcomes. Much of the gap between the earnings of immigrant and Canadian-born graduates was associated with differences in country of education. STEM immigrants educated in Canada, the United States, the United Kingdom or France had outcomes similar to the Canadian-born.