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The Immigrant Wage Gap in Canada: Differences between the Public and the Private Sector

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  • Serge Nadeau

    ()
    (Department of Economics, University of Ottawa, Ottawa, ON)

Abstract

This paper uses 2006 Canadian census data to examine patterns of wage differentials between immigrants and Canadian natives across the public and private sectors. Results reveal that the wage gap is much more a private sector issue than a public sector issue: the average wage gap is in favour of Canadian natives in the private sector but in favour of immigrants in the public sector; compared to natives, immigrants earn significantly less per year of domestic schooling and per year of domestic work experience in the private sector than in the public sector; foreign schooling and foreign work experience are less rewarded in the private sector than in the public sector; and, immigrants from non-traditional source countries are more at a disadvantage in the private sector than in the public sector.

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File URL: http://www.socialsciences.uottawa.ca/sites/default/files/public/eco/1303e.pdf
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Bibliographic Info

Paper provided by University of Ottawa, Department of Economics in its series Working Papers with number 1303E.

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Length: 33 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:ott:wpaper:1303e

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Related research

Keywords: Wage differentials; immigrants vs. Canadian-born individuals; public vs. private sector; switching regression model; immigration policies;

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  1. Rabin, Matthew, 1997. "Psychology and Economics," Department of Economics, Working Paper Series qt8jd5z5j2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  2. Ted O'Donoghue & Matthew Rabin, 1996. "Doing It Now or Later," Discussion Papers 1172, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Neill, Christine, 2009. "Tuition fees and the demand for university places," Economics of Education Review, Elsevier, vol. 28(5), pages 561-570, October.
  4. Michael B. Coelli, 2009. "Tuition fees and equality of university enrolment," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1072-1099, August.
  5. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
  6. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts," NBER Working Papers 6385, National Bureau of Economic Research, Inc.
  7. Akerlof George A & Kranton Rachel, 2010. "Identity Economics," The Economists' Voice, De Gruyter, vol. 7(2), pages 1-3, June.
  8. Stephen V. Cameron & James J. Heckman, 1998. "Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts of American Males," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 262-333, April.
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