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

ABSTRACT 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.