Immigration Wage Gaps in the Private Sector and Public Sector in Canada

Abstract

The purpose of this paper is to analyze the wage disparity between immigrant workers and Canadian-born workers across the private and public sectors, using the Public Use Microdata Files of the 2006 census and the 2011 National Household Survey from Statistics Canada. Both sets of data suggest that immigrant workers earn significantly less than their native peers, and public-sector workers enjoy a higher pay premium compared to their private sector counterparts. The 2006 census data results show that both male and female immigrants receive a higher wage than native workers in the public sector, but the 2011 results, however, suggest that female immigrants experience a wage penalty in both the private and public sectors. This paper will conclude with potential implications for policy.