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Earnings of Immigrant Entrepreneurs and Paid Workers in Canadian Gateway and Non-gateway Metropolises


  • Eric Fong


  • James Jeong
  • Alice Hoe
  • Siyue Tian


A growing number of immigrants are living in non-gateway metropolises. In this paper, drawing from the 2006 Canadian census, we explore and compare the earnings of immigrants in Canadian gateway and non-gateway metropolises. We differentiate entrepreneurs and paid workers in the analysis. In addition, we compare white and non-white immigrants in gateway and non-gateway metropolises. We employ an endogenous switching regression model to address the issue of the “selectivity” of immigrants settling in gateway and non-gateway metropolises. Findings show that the earnings of immigrants always are lower in gateway metropolises than in non-gateway metropolises. Separate analyses for entrepreneurs and paid workers show the same pattern. We also find that there is a significant difference in the earnings of white and non-white immigrants in gateway metropolises only, controlling for demographic and socioeconomic background. In addition, recency of arrival and language ability are not related to earnings for those working in non-gateway metropolises. The implications of the findings are discussed. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Eric Fong & James Jeong & Alice Hoe & Siyue Tian, 2015. "Earnings of Immigrant Entrepreneurs and Paid Workers in Canadian Gateway and Non-gateway Metropolises," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(2), pages 279-305, April.
  • Handle: RePEc:kap:poprpr:v:34:y:2015:i:2:p:279-305
    DOI: 10.1007/s11113-014-9333-x

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    References listed on IDEAS

    1. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-489, October.
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    3. Michael Haan, 2008. "The Place of Place: Location and Immigrant Economic Well-being in Canada," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(6), pages 751-771, December.
    4. Casey Warman, 2007. "Ethnic enclaves and immigrant earnings growth," Canadian Journal of Economics, Canadian Economics Association, vol. 40(2), pages 401-422, May.
    5. Ellis, Mark & Goodwin-White, Jamie, 2006. "1.5 Generation Internal Migration in the US: Dispersion from States of Immigration?," IZA Discussion Papers 2274, Institute for the Study of Labor (IZA).
    6. Cathy Yang Liu, 2012. "Intrametropolitan Opportunity Structure and the Self-Employment of Asian and Latino Immigrants," Economic Development Quarterly, , vol. 26(2), pages 178-192, May.
    7. Abada, Teresa & Hou, Feng & Ram, Bali, 2007. "Racially mixed neighborhoods, perceived neighborhood social cohesion, and adolescent health in Canada," Social Science & Medicine, Elsevier, vol. 65(10), pages 2004-2017, November.
    8. Daniel A. Powers, 1993. "Endogenous Switching Regression Models with Limited Dependent Variables," Sociological Methods & Research, , vol. 22(2), pages 248-273, November.
    9. Michael Aguilera, 2009. "Ethnic enclaves and the earnings of self-employed Latinos," Small Business Economics, Springer, vol. 33(4), pages 413-425, December.
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