Ethnic Neighbourhoods and Male Immigrant Earnings Growth: 1981 Through 1996 - ARCHIVED

Articles and reports: 11F0019M2005241


This paper examines the effect of ethnic neighbourhoods on wage growth as well as other labour market outcomes of immigrant men in Canada using the 1981, 1986, 1991 and 1996 Censuses. While the primary measure of affiliation is country of birth, ethnicity, language and visible minority status are also examined to determine the robustness of the findings. Consistent with U.S. findings, ethnic neighbourhoods based on country of birth are found to have a negative impact on the ten-year wage growth of immigrants. Further, the model for wage growth is found to be robust to different lengths of time and different base years as well as the specification of language and ethnicity as the affiliation grouping. Using country of birth as the affiliation index, exposure is also found to have a negative impact on the growth of total and weekly earnings as well as the initial wages of entry cohorts. While little evidence is found on the effects of ethnic neighbourhoods on changes in employment, a negative effect of exposure is found on entry employment rates of the most recent landing cohorts. Although the overall effect of ethnic neighbourhoods on wage growth is negative, ethnic neighbourhoods are found to have a divergent effect on different landing cohorts, having a positive impact on the wage growth of the more recent cohorts and a negative impact on earlier cohorts.

Issue Number: 2005241
Author(s): Warman, Casey
FormatRelease dateMore information
PDFFebruary 25, 2005