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Minorities, Cognitive Skills and Incomes of Canadians

  • Ross Finnie

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.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 28 (2002)
Issue (Month): 2 (June)
Pages: 257-273

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Handle: RePEc:cpp:issued:v:28:y:2002:i:2:p:257-273
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  1. Rivera-Batiz, Francisco L., 1990. "English language proficiency and the economic progress of immigrants," Economics Letters, Elsevier, vol. 34(3), pages 295-300, November.
  2. Charette, Michael & Meng, Ronald, 1994. "Explaining language proficiency : Objective versus self-assessed measures of literacy," Economics Letters, Elsevier, vol. 44(3), pages 313-321.
  3. 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.
  4. 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.
  5. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  6. 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 869-95, October.
  7. 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.
  8. 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.
  9. 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.
  10. David A Green & W Craig Riddell, . "Literacy, Numeracy and Labour Market Outcomes in Canada," Canadian International Labour Network Working Papers 47, McMaster University.
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