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Ethnic Neighbourhoods and Male Immigrant Earnings Growth: 1981 Through 1996

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Warman, Casey

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Abstract

This paper examines the effect of ethnic neighbourhoods on wage growth as well as other labour market outcomes of immigrant men in Canada using the 1981, 1986, 1991 and 1996 Censuses. While the primary measure of affiliation is country of birth, ethnicity, language and visible minority status are also examined to determine the robustness of the findings. Consistent with U.S. findings, ethnic neighbourhoods based on country of birth are found to have a negative impact on the ten-year wage growth of immigrants. Further, the model for wage growth is found to be robust to different lengths of time and different base years as well as the specification of language and ethnicity as the affiliation grouping. Using country of birth as the affiliation index, exposure is also found to have a negative impact on the growth of total and weekly earnings as well as the initial wages of entry cohorts. While little evidence is found on the effects of ethnic neighbourhoods on changes in employment, a negative effect of exposure is found on entry employment rates of the most recent landing cohorts. Although the overall effect of ethnic neighbourhoods on wage growth is negative, ethnic neighbourhoods are found to have a divergent effect on different landing cohorts, having a positive impact on the wage growth of the more recent cohorts and a negative impact on earlier cohorts.

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Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2005241e.

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Date of creation: 25 Feb 2005
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Handle: RePEc:stc:stcp3e:2005241e

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Keywords: Languages; Labour; Ethnic diversity and immigration; Wages; salaries and other earnings; Ethnic groups and generations in Canada; Immigrants and non-permanent residents; Integration of newcomers; Labour market and income; Visible minorities;

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  1. Derek Hum & Wayne Simpson, 1999. "Wage Opportunities for Visible Minorities in Canada," Canadian Public Policy, University of Toronto Press, vol. 25(3), pages 379-394, September. [Downloadable!] (restricted)
  2. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects And Welfare Cultures," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 1019-1055, August. [Downloadable!] (restricted)
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  3. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July. [Downloadable!] (restricted)
  4. Oreopoulos, Philip, 2002. "Do Neighbourhoods Influence Long-term Labour Market Success? A Comparison of Adults Who Grew up in Different Public Housing Projects," Analytical Studies Branch Research Paper Series 2002185e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  5. Green, David A, 1999. "Immigrant Occupational Attainment: Assimilation and Mobility over Time," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 49-79, January. [Downloadable!] (restricted)
    Other versions:
  6. Barry R. Chiswick, 2000. "A Model of Immigrant Language Acquisition: Application to Male Immigrants in Canada," University of Chicago - George G. Stigler Center for Study of Economy and State 149, Chicago - Center for Study of Economy and State. [Downloadable!]
  7. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December. [Downloadable!] (restricted)
  8. Krishna Pendakur & Ravi Pendakur, 2002. "Colour My World: Have Earnings Gaps for Canadian-Born Ethnic Minorities Changed Over Time?," Canadian Public Policy, University of Toronto Press, vol. 28(4), pages 489-511, December. [Downloadable!] (restricted)
  9. Chiswick, Barry R. & Miller, Paul W., 2002. "Do Enclaves Matter in Immigrant Adjustment?," IZA Discussion Papers 449, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Alan G. Green & David A. Green, 1995. "Canadian Immigration Policy: The Effectiveness of the Point System and Other Instruments," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 1006-41, November.
  11. James Ted McDonald & Christopher Worswick, 1997. "Unemployment Incidence of Immigrant Men in Canada," Canadian Public Policy, University of Toronto Press, vol. 23(4), pages 353-373, December. [Downloadable!] (restricted)
  12. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
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  13. 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, ILR School, Cornell University, vol. 51(3), pages 465-482, April.
  14. Krishna Pendakur & Ravi Pendakur, 1998. "The Colour of Money: Earnings Differentials Among Ethnic Groups in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(3), pages 518-548, August. [Downloadable!] (restricted)
  15. Alan G. Green & David A. Green, 1999. "The Economic Goals of Canada's Immigration Policy, Past and Present," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 425-451, December. [Downloadable!] (restricted)
    Other versions:
  16. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  17. David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
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  18. 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. [Downloadable!] (restricted)
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