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Minorities, Cognitive Skills and Incomes of Canadians

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  • Ross Finnie

Abstract

This paper uses the Statistics Canada Survey of Literacy Skills in Daily Use (LSUDA) to investigate minority- white income differences and the role cognitive skills play in those patterns. Some minority groups have substantially lower (tested) levels of literacy and numeracy skills than whites and other more economically successful minorities, and in the case of certain male groups these differences play a significant role in explaining the observed income patterns. The ethnic-white income gaps are, however, much smaller for women, and the literacy and numeracy variables do not have much of a role to play in explaining those differences. Various policy implications are discussed.

Suggested Citation

  • Ross Finnie, 2002. "Minorities, Cognitive Skills and Incomes of Canadians," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 257-273, June.
  • Handle: RePEc:cpp:issued:v:28:y:2002:i:2:p:257-273
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    References listed on IDEAS

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    1. Peter S. Li, 2001. "The Market Worth of Immigrants' Educational Credentials," Canadian Public Policy, University of Toronto Press, vol. 27(1), pages 23-38, March.
    2. 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.
    3. Charette, Michael & Meng, Ronald, 1994. "Explaining language proficiency : Objective versus self-assessed measures of literacy," Economics Letters, Elsevier, vol. 44(3), pages 313-321.
    4. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    5. 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.
    6. 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.
    7. 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.
    8. Pryor,Frederic L. & Schaffer,David L., 1999. "Who's Not Working and Why," Cambridge Books, Cambridge University Press, number 9780521651523, April.
    9. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
    10. Rivera-Batiz, Francisco L., 1990. "English language proficiency and the economic progress of immigrants," Economics Letters, Elsevier, vol. 34(3), pages 295-300, November.
    11. David A Green & W Craig Riddell, "undated". "Literacy, Numeracy and Labour Market Outcomes in Canada," Canadian International Labour Network Working Papers 47, McMaster University.
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    Cited by:

    1. repec:zbw:rwirep:0065 is not listed on IDEAS
    2. Torge Middendorf, 2008. "Returns to Education in Europe – Detailed Results from a Harmonized Survey," Ruhr Economic Papers 0065, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    4. Middendorf, Torge, 2008. "Returns to Education in Europe – Detailed Results from a Harmonized Survey," Ruhr Economic Papers 65, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Yang Song, 2012. "Poverty Reduction in China: The Contribution of Popularizing Primary Education," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(1), pages 105-122, January.
    6. 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.

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