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Understanding the Economic Integration of Immigrants: A Wage Decomposition of the Earnings Disparities between Native-Born Canadians and Recent Immigrant Cohorts

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  • Kristyn Frank

    ()
    (Department of Sociology and Anthropology, University of Guelph, 6th floor Mackinnon Building, 50 Stone Road East, Guelph, Ontario, N1G 2W1, Canada)

  • Kelli Phythian

    (Department of Sociology, University of Western Ontario, Room 5306 Social Science Centre, London, Ontario, N6A 5C2, Canada)

  • David Walters

    (Department of Sociology and Anthropology, University of Guelph, 6th floor Mackinnon Building, 50 Stone Road East, Guelph, Ontario, N1G 2W1, Canada)

  • Paul Anisef

    (Department of Sociology, York University, 803 Research Tower, 4700 Keele Street, Toronto, Ontario, M3J 1P3, Canada)

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    Abstract

    This study assesses whether characteristics relating to ethnic identity and social inclusion influence the earnings of recent immigrants in Canada. Past research has revealed that relevant predictors of immigrant earnings include structural and demographic characteristics, educational credentials and employment-related characteristics. However, due to the unavailability of situational and agency variables in existing surveys, past research has generally been unable to account for the impact of such characteristics on the economic integration of immigrants. Drawing on data from Statistics Canada's Ethnic Diversity Survey, this paper builds on previous research by identifying the relative extent to which sociodemographic, educational and ethnic identity characteristics explain earnings differences between immigrants of two recent cohorts and native-born Canadians. The results indicate that immigrants are disadvantaged in the labor market in terms of characteristics relating to sociodemographics and ethnic identity, but are advantaged in terms of human capital.

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    Bibliographic Info

    Article provided by MDPI, Open Access Journal in its journal Social Sciences.

    Volume (Year): 2 (2013)
    Issue (Month): 2 (April)
    Pages: 40-61

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    Handle: RePEc:gam:jscscx:v:2:y:2013:i:2:p:40-61:d:24851

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    Web page: http://www.mdpi.com/

    Related research

    Keywords: immigration; ethnic identity; economic integration; wage decomposition; Canada;

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    References

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    1. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    2. George J. Borjas, 1987. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc.
    3. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    4. Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 930-955, August.
    5. Abdurrahman Aydemir & Mikal Skuterud, 2004. "Explaining the Deteriorating Entry Earnings of Canada’s Immigrant," Labor and Demography 0409006, EconWPA.
    6. James Ted McDonald & Christopher Worswick, 1998. "The Earnings of immigrant men in Canada: Job tenure, cohort, and macroeconomic conditions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 465-482, April.
    7. Michael G. Abbott & Charles M. Beach, 1993. "Immigrant Earnings Differentials and Birth-Year Effects for Men in Canada: Post-war-1972," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 505-24, August.
    8. Peter S. Li, 2003. "Initial Earnings and Catch-Up Capacity of Immigrants," Canadian Public Policy, University of Toronto Press, vol. 29(3), pages 319-337, September.
    9. Serge Nadeau & Aylin Seckin, 2010. "The Immigrant Wage Gap in Canada: Quebec and the Rest of Canada," Canadian Public Policy, University of Toronto Press, vol. 36(3), pages 265-285, September.
    10. Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 879-905, November.
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