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The Size and Structure of Native-White Wage Differentials in Canada

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  • Peter George
  • Peter Kuhn

Abstract

The labor market behavior of aboriginal Canadians has been little studied by economists. This paper establishes some basic empirical regularities concerning the wages of natives in Canada, applying techniques drawn from the earnings function literature to the Statistics Canada 1986 Census Public Use Sample Tape. The raw wage gap between aboriginal and white Canadians is relatively small compared with that of other disadvantaged groups in North America, and it is smaller for women than for males. Differences in observable characteristics such as education, language, and region account for as much as 50 percent of the overall white-native wage gap.

Suggested Citation

  • Peter George & Peter Kuhn, 1994. "The Size and Structure of Native-White Wage Differentials in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 20-42, February.
    • Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:20-42
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    Citations

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    Cited by:

    1. Arnold de Silva, 1999. "Wage Discrimination Against Natives," Canadian Public Policy, University of Toronto Press, vol. 25(1), pages 65-85, March.
    2. Louis N. Christofides & Robert Swidinsky, 1994. "Wage Determination by Gender and Visible Minority Status: Evidence from the 1989 LMAS," Canadian Public Policy, University of Toronto Press, vol. 20(1), pages 34-51, March.
    3. Donna Feir & Randall Akee, 2019. "First Peoples lost: Determining the state of status First Nations mortality in Canada using administrative data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 490-525, May.
    4. Bernier, Rachel, 1998. "Les dimensions de l'inegalite salariale chez les Autochtones," Direction des études analytiques : documents de recherche 1997109f, Statistics Canada, Direction des études analytiques.
    5. Feir, Donn. L. & Foley, Kelly & Jones, Maggie E. C., 2022. "Heterogeneous Returns to Active Labour Market Programs for Indigenous Populations," IZA Discussion Papers 15358, Institute of Labor Economics (IZA).
    6. Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
    7. Peter Kuhn & Arthur Sweetman, "undated". "Assimilation and Economic Success in an Aboriginal Population: Evidence from Canada," Canadian International Labour Network Working Papers 18, McMaster University.
    8. Maggie Jones, 2017. "Student Aid And The Distribution Of Educational Attainment," Working Paper 1373, Economics Department, Queen's University.
    9. Frenette, Marc, 2011. "What Explains the Educational Attainment Gap between Aboriginal and Non-Aboriginal Youth?," CLSSRN working papers clsrn_admin-2011-13, Vancouver School of Economics, revised 27 Jun 2011.
    10. Steve Bradley & Mirko Draca & Colin Green & Gareth Leeves, 2007. "The magnitude of educational disadvantage of indigenous minority groups in Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 547-569, July.
    11. Ross Finnie, 2002. "Minorities, Cognitive Skills and Incomes of Canadians," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 257-273, June.
    12. Finnie, Ross & Meng, Ronald, 2003. "Minorites, capacites cognitives et revenus des Canadiens," Direction des études analytiques : documents de recherche 2003196f, Statistics Canada, Direction des études analytiques.
    13. Maggie Jones & Michael Barber, 2019. "Inequalities in Test Scores between Indigenous and Non-Indigenous Youth in Canada," Department Discussion Papers 1904, Department of Economics, University of Victoria.
    14. Kimmel, Jean, 1997. "Rural wages and returns to education: Differences between whites, blacks, and American Indians," Economics of Education Review, Elsevier, vol. 16(1), pages 81-96, February.
    15. Finnie, Ross & Meng, Ronald, 2003. "Minorities, Cognitive Skills and the Incomes of Canadians," Analytical Studies Branch Research Paper Series 2003196e, Statistics Canada, Analytical Studies Branch.
    16. Fernando M. Aragón & Anke S. Kessler, 2020. "Property rights on First Nations reserve land," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(2), pages 460-495, May.
    17. Finnie, Ross & Meng, Ronald, 2006. "The Importance of Functional Literacy: Reading and Math Skills and Labour Market Outcomes of High School Drop-outs," Analytical Studies Branch Research Paper Series 2006275e, Statistics Canada, Analytical Studies Branch.
    18. Bernier, Rachel, 1998. "The Dimensions of Wage Inequality Among Aboriginal Peoples," Analytical Studies Branch Research Paper Series 1997109e, Statistics Canada, Analytical Studies Branch.
    19. Hurst, Michael, 1997. "The determinants of earnings differentials for indigenous Americans: Human capital, location, or discrimination?," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(4), pages 787-807.
    20. Barber, Michael & Jones, Maggie E.C., 2021. "Inequalities in test scores between Indigenous and non-Indigenous youth in Canada," Economics of Education Review, Elsevier, vol. 83(C).
    21. Jones, Maggie E.C., 2023. "Post-secondary funding and the educational attainment of indigenous students," Economics of Education Review, Elsevier, vol. 97(C).
    22. Danielle Lamb, 2013. "Earnings Inequality Among Aboriginal Groups in Canada," Journal of Labor Research, Springer, vol. 34(2), pages 224-240, June.

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