Earnings Inequality and Earnings Instability of Immigrants in Canada


Book Description

This study examines the changing fortunes of immigrants in Canada by focusing on their earnings inequality and earnings instability. The analysis is based on a flexible econometric model that decomposes earnings inequality into current and long-term components. In addition to constructing earnings inequality and earnings instability profiles for different arrival cohorts, the report also analyses the underlying causes of earnings inequality, including the impact of foreign education, birthplace and the ability to speak English or French.--Includes text from document.







Technological Change, Occupational Tasks and Declining Immigrant Outcomes


Book Description

The earnings and occupational task requirements of immigrants to Canada are analyzed. The growing education levels of immigrants in the 1990s have not led to a large improvement in earnings as one might expect if growing computerization and the resulting technological change was leading to a rising return to non-routine cognitive skills and a greater wage return to university education. Controlling for education, we find a pronounced cross-arrival cohort decline in earnings that coincided with cross-cohort declines in cognitive occupational task requirements and cross-cohort increases in manual occupational task requirements. The immigrant earnings outcomes had only a small effect on overall Canadian earnings inequality.







Employer Policies and the Immigrant-native Earnings Gap


Book Description

We use longitudinal data from the income tax system to study the impacts of firms' employment and wage-setting policies on the level and change in immigrant-native wage differences in Canada. We focus on immigrants who arrived in the early 2000s, distinguishing between those with and without a college degree from two broad groups of countries - the U.S., the U.K. and Northern Europe, and the rest of the world. Consistent with a growing literature based on the two-way fixed effects model of Abowd, Kramarz, and Margolis (1999), we find that firm-specific wage premiums explain a significant share of earnings inequality in Canada and contribute to the average earnings gap between immigrants and natives. In the decade after receiving permanent status, earnings of immigrants rise relative to those of natives. Compositional effects due to selective outmigration and changing participation play no role in this gain. About one-sixth is attributable to movements up the job ladder to employers that offer higher pay premiums for all groups, with particularly large gains for immigrants from the "rest of the world” countries.




Earnings of Immigrants


Book Description

Covers the period 1946-1989.




Income Inequality


Book Description

"Rising income inequality has been at the forefront of public debate in Canada in recent years, yet there is still much to be learned about the economic forces driving the distribution of earnings and income in this country and how they might evolve in coming years. With research showing that the tax-and-transfer system is less effective than in the past in counteracting growing income disparities, the need for policy-makers to understand the factors at play is all the more urgent. The Institute for Research on Public Policy, in collaboration with the Canadian Labour Market and Skills Researcher Network, has gathered some of the country’s leading experts to provide new evidence on the causes and effects of rising income inequality in Canada and to consider the role of policy. Their research and analysis constitutes a comprehensive review of Canadian inequality trends in recent decades, including changing earnings and income dynamics among middle--class and top earners, wage and job polarization across provinces, and persistent poverty among vulnerable groups. The authors also examine the changing role of education and unionization, as well as the complex interplay of redistributive policies and politics, in order to propose new directions for policy. Amid growing anxieties about the economic prospects of the middle class, Income Inequality: The Canadian Story will inform the public discourse on this issue of central concern for all Canadians."--Publisher's website.




Earnings Dynamics and Inequality Among Canadian Men, 1976-1992


Book Description

Several recent studies have found that earnings inequality in Canada has grown considerably since the late 1970's. Using an extraordinary data base drawn from longitudinal income tax records, we decompose this growth in earnings inequality into its persistent and transitory components. We find that the growth in earnings inequality reflects both an increase in long-run inequality and an increase in earnings instability. The large size of our earnings panel allows us to estimate and test richer models of earnings dynamics than could be supported by the relatively small panel surveys used in U.S. research. The Canadian data strongly reject several restrictions commonly imposed in the U.S. literature, and they also suggest that imposing these evidently false restrictions may lead to distorted inferences about earnings dynamics and inequality trends.




Immigration, Poverty and Income Inequality in Canada


Book Description

These changes include the introduction of the Immigration and Refugee Protection Act, which altered the selection criteria for economic immigrants; the expansion of the Provincial Nominee Program (PNP), which sent more immigrants to nontraditional destinations, mainly in western Canada; and the introduction of new programs such as the Ministerial Instructions, the Canadian Experience Class and the [...] In that context, we assess the direct effect of immigration on changes in the low-income rate, the high-income rate, family income inequality and earnings inequality in Canada between 1995 and 2010, and in particular we examine what factors explain the decline in the low-income rate among recent immigrants over the 2000s. [...] In Manitoba and Saskatchewan - which saw a significant increase in the number of immigrants admitted through the PNP in the 2000s, doubling the share of the population consisting of recent immigrants (although remaining well below the share in Montreal, Toronto and Vancouver) - the low-income rate among recent immigrants rapidly declined over the decade (see table 2). [...] But did the decline in the low-income rate among recent immigrants contribute to the fall in the overall Canadian rate during the 2000s, just as it accounted for much of the rise in the 1990s? [...] We decompose the 0.042 change in the index value and find that, although the population share of immigrants who had been in Can- ada for less than 15 years increased from 7.2 percent to 8.2 percent, the difference in income inequality between immigrants and the Canadian-born did not make a major contribution to the increase in aggregate inequality - the increase in the share of immigrants in the p.