Social Sciences
4 years ago

Visible minority immigrants in Canada face income growth disparities due to racial bias.

SSRN Electronic Journal
Income Growth of New Immigrants in Canada: Evidence from the Survey of Labour and Income Dynamics
Rupa Banerjee

Paper Summary

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New immigrants in Canada face initial earnings disadvantage, especially visible minority immigrants. While European immigrants catch up in earnings over time, visible minority immigrants do not. This difference is due to lower returns on education, work experience, and unionization for visible minority immigrants. Additionally, speaking a non-official first language leads to greater penalties for visible minority immigrants compared to white immigrants.