Earnings Gap between First-, Second-, and Third-Generation Immigrants in Canada

Abstract

This paper uses 2016 Canadian Census data to study the earnings gap between Canada’s first-generation immigrants, second-generation immigrants and third-generation immigrants. The first-generation immigrants are defined as individuals who were born outside of Canada. The second-generation immigrants are defined as individuals who have at least one foreign-born parent. They are also divided into two sub-groups: both foreign-born parents and only one foreign-born parent. Individuals whose parents are both Canadian-born are defined as third-generation immigrants. The first-generation immigrants are also divided into five different groups according to their age at immigration. After analyzing males and females separately, it is found that the first-generation immigrants who landed before they were 19 years old and second-generation immigrants have an earnings advantage over the third-generation immigrants. In most cases, second-generation immigrants also have an earnings advantage over first-generation immigrants.