Assessing the Impact of the Post Graduate Work Permit Program on the Earnings of International Students: Evidence From Canadian Employer Employee Dynamics Dataset

This study examines the impact of Canada's Post-Graduation Work Permit Program (PGWPP) on the experience premium of former international students using the Canadian Employer-Employee Dynamics Dataset (CEEDD). The PGWPP allows former international students to work in Canada without restrictions, theoretically equalizing their job prospects with Canadian-born workers and immigrants arriving directly from abroad. Using employer-employee fixed effects models, the study found that the PGWPP reduced the experience premium for former international students by 4.6%. Additionally, the policy had unintended negative effects on other immigrant groups. We explore potential explanations for these outcomes and offer policy recommendations.