Are Immigrants More Likely to Retire Later Than Canadian-Born Workers

Abstract

The work participation rate is one of the most important factors that affects the Canadian economy and early retirement can have an important negative impact on this rate. This paper focuses on differences in the preferences for the age of retirement of immigrants and Canadian-born workers. Based on a very large dataset from the Canadian Community Health Survey (CCHS), a probit model is used to estimate the probability of retirement for both immigrants and Canadian-born workers at different age ranges. The main results suggest that immigrants tend to retire at an older age than Canadian-born workers. This result is consistent with the first assumption that immigrants are willing to work longer to increase their CPP and their personal saving, and the second assumption that immigrants have a potential better health status, which could also lead to a later retirement.