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

Listed author(s):
  • Eric Fong

    ()

  • James Jeong
  • Alice Hoe
  • Siyue Tian
Registered author(s):

    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

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    File URL: http://hdl.handle.net/10.1007/s11113-014-9333-x
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    Article provided by Springer & Southern Demographic Association (SDA) in its journal Population Research and Policy Review.

    Volume (Year): 34 (2015)
    Issue (Month): 2 (April)
    Pages: 279-305

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    Handle: RePEc:kap:poprpr:v:34:y:2015:i:2:p:279-305
    DOI: 10.1007/s11113-014-9333-x
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    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.
    2. Abdurrahman Aydemir & Mikal Skuterud, 2005. "Explaining the deteriorating entry earnings of Canada's immigrant cohorts, 1966 - 2000," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 641-672, May.
    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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