The Social Rate of Return to Investing in Character: An Economic Evaluation of Alberta’s Immigrant Access Fund Microloan Program
Abstract
Skilled immigrants are a key source of labour supply to address the expected labour market shortages in Canada. But immigrants need the accreditation to work at their chosen occupation. However, credential recognition is difficult for many immigrants because they often don’t have access to credit. We analyzed the Immigrant Access Fund (IAF) and estimated how profitable and efficient it is as an investment. IAF is an institution providing small loans on a not-for-profit basis to assist Alberta immigrants in acquiring the Canadian accreditation and training they need to work their field of expertise. We assessed that effectively, each dollar that the government puts towards this program generates $3 or more in GDP. This means that IAF is an efficient program, and it can serve as an example in the improvement of the Canadian immigration policy.
Notes
Location
Calgary, Alberta; Edmonton, Alberta
Key recommendations
IAF is a good working example on how to improve efficiency of the Canadian immigration system -> more programs like this are needed
Key populations
Skilled immigrants
Key findings
Skilled immigrant workers are a key source of labour supply for addressing the expected labour market shortages in Canada. But they often lack the necessary accreditation to work at their chosen occupation in the Canadian market.
The Immigrant Access Fund (IAF) provides loans to immigrants to cover costs for education, training, qualification assessment, etc.
The typical loan IAF applicant:
male and has been in Canada for 1 to 2 years before applying for a loan
three-quarters of borrowers intend to work in occupations related to health (39 %), engineering (21 %), or finance/accounting (16 %)
Effectively, each dollar that the government puts towards this program generates $3 or more in GDP
Gaps identified
Skilled workers often don’t have the necessary accreditation to work at their chosen occupation in Canada
Immigrant workers’ professional experience often becomes devalued
Lower literacy levels among immigrant workers compared to Canadians
Community organizations
NA
Integration timeline
At what point during the integration process the study was conducted?
NA
Open-access – No