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Intergenerational Earnings Mobility Among the Children of Canadian Immigrants

by Abdurrahman Aydemir, Wen-Hao Chen and Miles Corak
Family and Labour Studies Division
Analytical Studies Branch research paper series, No. 267

Context

The degree of generational mobility—the relationship between a child’s adult labour market and social success and his or her family background—is an important aspect of how societies function. The extent to which children from impoverished backgrounds can realistically aspire to better themselves, or conversely the extent to which children from the highest strata can expect to inherit the same position as their parents, speaks to important social issues such as the long-term consequences of child poverty or more generally to equality of opportunity. However, this is a topic that is also particularly relevant to immigrants and their integration into host countries.

Objectives

The study analyses the extent to which the adult socio-economic status of Canadian born children of immigrants are tied to the status of their parents.

Findings

The earnings of second-generation Canadians are only loosely tied to the socio-economic status of their parents. On average, only about one-fifth to one-quarter of any earnings advantage or disadvantage an immigrant father may have is passed on to his son. This is no different than among the Canadian population at large, and it is lower by half than in the United States. Further, there is no correlation at all between paternal earnings and the adult earnings of daughters.

Second-generation children in Canada are more educated and earn more on average than Canadians of a similar age whose parents were both born in Canada, according to the study. Except for those whose fathers were from the Caribbean, Central and South America, and Oceania, they also had higher weekly earnings. The earnings advantage was about 6%, except for those from the traditional source countries, where it was more than twice as great at 14%.

Data sources: Censuses of 1981 and 2001.

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