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Ethnic Neighbourhoods and Male Immigrant Earnings Growth: 1981 Through 1996

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  • Warman, Casey

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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Bibliographic Info

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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Web page: http://www.statcan.gc.ca
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Keywords: Ethnic diversity and immigration; Ethnic groups and generations in Canada; Immigrants and non-permanent residents; Integration of newcomers; Labour; Labour market and income; Languages; Visible minorities; Wages; salaries and other earnings;

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References

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  1. Bertrand, M. & Luttmer, E.F.P. & Mullainathan, S., 1998. "Network Effects and Welfare Cultures," Papers 201, Princeton, Woodrow Wilson School - Public and International Affairs.
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  15. 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.
  16. 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.
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