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Public and Private Sector Earnings of Immigrants and the Canadian-Born: Evidence from the Labour Force Survey

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  • Annabella Ansah

    (University of Lethbridge)

  • Richard E. Mueller

    (University of Lethbridge)

Abstract

Using Statistics Canada’s monthly Labour Force Survey master files from January 2006 to December 2018, this paper evaluates the wage differences between immigrants and comparable Canadian-born workers both within the respective levels of the private and public sectors, as well as the public sector wage premium within the immigrant and Canadian-born populations. Using both Ordinary Least Squares and Oaxaca-Blinder decomposition techniques, we find that the immigrant wage gap tends to be negative and is largest in the private sector. The public-sector premium relative to the private sector is also larger for immigrants that for the Canadian-born when we compare wage differences within the two groups. Combined, these results suggest that public sector wages are important to narrowing the overall immigrant wage gap.

Suggested Citation

  • Annabella Ansah & Richard E. Mueller, 2021. "Public and Private Sector Earnings of Immigrants and the Canadian-Born: Evidence from the Labour Force Survey," Journal of International Migration and Integration, Springer, vol. 22(4), pages 1403-1429, December.
    • Handle: RePEc:spr:joimai:v:22:y:2021:i:4:d:10.1007_s12134-021-00811-7
    DOI: 10.1007/s12134-021-00811-7
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    References listed on IDEAS

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    1. Hou, Feng & Picot, Garnett, 2014. "Immigration, Low Income and Income Inequality in Canada: What?s New in the 2000s?," Analytical Studies Branch Research Paper Series 2014364e, Statistics Canada, Analytical Studies Branch.
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    8. David Prescott & Bo Wandschneider, 1999. "Public/private sector wage differentials in Canada-evidence from the 1991 and 1982 surveys of consumer finance," Applied Economics, Taylor & Francis Journals, vol. 31(6), pages 723-731.
    9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
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    Cited by:

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    2. Aidan Bodner & Leo Ruhl & Emily Barr & Arti Shridhar & Shayna Skakoon-Sparling & Kiffer George Card, 2022. "The Impact of Working from Home on Mental Health: A Cross-Sectional Study of Canadian Worker’s Mental Health during the Third Wave of the COVID-19 Pandemic," IJERPH, MDPI, vol. 19(18), pages 1-15, September.

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