Immigrants working with co‐ethnics: Who are they and how do they fare?

Participation in ethnic economies has been regarded as an alternative avenue of economic adaptation for immigrants and minorities in major immigrant‐receiving countries. This study examines one important dimension of ethnic economies: co‐ethnic concentration at the workplace. Using a large national representative sample from Statistics Canada’s 2002 Ethnic Diversity Survey, this study addresses four questions: (1) what is the level of co‐ethnic concentration at the workplace for Canada’s minority groups? (2) How do workers who share the same ethnicity with most of their co‐workers differ from other workers in socio‐demographic characteristics? (3) Is higher level of co‐ethnic concentration at the workplace associated with lower earnings? (4) Is higher level of co‐ethnic concentration at the workplace associated with higher levels of life satisfaction? The results show that only a small proportion of immigrants and the Canadian‐born work in ethnically homogeneous settings. In Canada’s eight largest metropolitan areas about 10 per cent of non‐British/French immigrants share a same ethnic origin with the majority of their co‐workers. The level is as high as 20 per cent among Chinese immigrants and 18 per cent among Portuguese immigrants. Among Canadian‐born minority groups, the level of co‐ethnic workplace concentration is about half the level for immigrants. Immigrant workers in ethnically concentrated settings have much lower educational levels and proficiency in English/French. Immigrant men who work mostly with co‐ethnics on average earn about 33 per cent less than workers with few or none co‐ethnic coworkers. About two thirds of this gap is attributable to differences in demographic and job characteristics. Meanwhile, immigrant workers in ethnically homogenous settings are less likely to report low levels of life satisfaction than other immigrant workers. Among the Canadian‐born, co‐ethnic concentration is not consistently associated with earnings and life satisfaction.     

The Native‐Immigrant Income Gap among the Self‐Employed in Sweden

During recent years we have observed that non‐western immigrants are overrepresented among the self‐employed in Sweden. A reason for this might be the difficulties faced by immigrants in the labour market. The unemployment rate among non‐western immigrants in Sweden is higher than among natives with similar human capital characteristics. While this is a well‐established result, we do not know much about how self‐employed immigrants perform economically compared to their native counterparts. The purpose of this paper is to describe and analyse the incomes of self‐employed immigrants and natives in Sweden. We will also discuss possible explanations for the income gap we find. We use Swedish register data for the period 1998 to 2002 and the population studied consists of individuals who have been continuously self‐employed during this period. By performing the analysis on this group of self‐employed we get a measure of the difference among the long‐term self‐employed. The outcome of interest is the average income over the period. Income regressions are estimated using both OLS and quantile regressions. We find that self‐employed immigrants receive significantly lower incomes than their native counterparts when controlling for individual characteristics, industry and start‐up year of the firm. The income gap is larger for non‐western immigrants than for western immigrants. Quantile regressions show that the native‐immigrant income gap is smaller at the top than at the bottom of the income distribution. Several possible explanations for the native‐immigrant income gap are discussed. One possible explanation is that immigrants have a lower reservation wage and accepts staying in business receiving a lower income than comparable natives. Another explanation might be that there is discrimination against self‐employed immigrants that will lead to lower incomes. There can be consumer discrimination or discrimination from banks and real estate owners.     

A comparative study of immigrant and non-immigrant families in Canada with special reference to income, 1986

A comparison of immigrant and non-immigrant families in Canada based on unpublished data from the 1986 Consensus of Canada indicates that immigrant families have stronger family ties and higher income than their non-immigrant counterparts. This could be partly because immigrant families contain higher proportions of their members at prime working ages, higher proportions with three or more employment income recipients and higher proportions working full year full time. As the period of residence in Canada of immigrants increases, the difference in income between immigrant and non-immigrant families increases. However, the income difference is smaller for husband-wife and male lone-parent families than for female lone-parent families. The multivariate analysis of family income indicates that age and family type have overwhelming effects and that place of birth is third in importance. Immigrant families from the US, UK, Europe (excluding Southern Europe) and Africa have higher incomes than families from other places of birth.
Both non-immigrant and immigrant husband-wife and male lone-parent families derive about 75 per cent of their total income from wages and salaries, whereas non-immigrant and immigrant female lone-parent families derive about 62 and 68 per cent respectively. Non-immigrant female lone-parent families derive about 24 per cent of their income from government transfers, whereas immigrant female lone-parent families derive about 16 per cent. With the exception of Old Age Security payments and Guaranteed Income Supplement, government transfers such as Canada and Quebec Pension Plan payments, unemployment insurance benefits, family allowances, worker's compensation, provincial income supplements and tax credits are smaller for immigrant families both in dollar amounts and as proportions of their total income for the non-immigrant families.     

Fragile families in the American welfare state

The proportion of children born out of wedlock is now over 40%. At birth, about half of these parents are co-habiting. This paper examines data from the Fragile Families and Child Wellbeing study (N = 4271) to describe for the first time the role of welfare state benefits in the economic lives of married, cohabiting, and single parent families with young children. Surprisingly, total welfare state benefits received by the three family types are relatively similar. Nearly half of the full incomes of fragile families come from welfare state transfers. For single parent families the proportion is slightly more than two thirds. Though aggregate welfare state transfers are approximately equal across family type and thus change very little as marital status changes, these transfers and the taxes required to finance them cushion family status changes and substantially narrow the gap in full income between married and fragile families.     

Employment income of immigrants in metropolitan areas of Canada, 1980

This paper examines the economic achievements of immigrant groups and compares them with those of the Canadian-born population. Employment income in this study is income for members of the labor force who worked 40 weeks or more, full time, during 1980. The information is from the 1981 Census. The 15 birthplace groups considered in this study are classified into 2 major groups: those from traditional sources and those from non-traditional or new sources. Traditional sources are the US, UK, and Europe. The new sources are Africa, Asia, South and Central America, the Caribbean, and Oceania. More than 1/2 of the immigrants from traditional sources arrived before 1960, whereas more than 1/2 of immigrants from new sources arrived after 1970. The analysis is only for those areas called Census Metropolitan Areas. Results of analysis show that 1) immigrant men and women in metropolitan areas earned 1.9% and 5.9% respectively less than their Canadian-born counterparts; 2) when differences in age and educational attainment were considered, incomes of immigrant men and women were about 7.5% below those of their Canadian-born counterparts; 3) the new immigrant groups earned far less than those of the Canadian-born counterparts; 4) traditional-source immigrants' incomes were equal to or slightly higher than Canadians'; and 5) as length of residence increases, most immigrant groups improve their relative economic position and achieve incomes comparable to Canadians'. The authors discuss the economic adaptation of immigrants in the light of various models: assimilation, Marxist class conflict, ethnic stratification and segmentation, structural pluralism, and structural change. No theory can be applied to the economic adaptation of all types of immigrants. Finally, refugees and sponsored relatives, who are not admitted on the basis of education and occupational need, are likely to have more difficulties than independent immigrants.     

The demographic and socio-economic characteristics of post-1965 immigrants to New York City: a comparative analysis by national origin

This article analyses and compares the demographic and socio‐economic characteristics of persons born abroad who immigrated to New York City after 1965 and still lived in the City in 1990. Using data from the 1990 Census, we classify persons into the twenty four largest national origin groups and compare their demographic and socio‐economic characteristics (sex, age, educational attainment, labour force participation, unemployment, occupation, income, and poverty). We pose and answer three empirical questions. The first question is: what are some of the main differences by national origin in the composition of persons immigrating to New York City after 1965? The second question is: what are some of the main differences in the location of post‐1965 immigrants in New York's socio‐economic structure? The third question is: what are some of the main differences in the economic rewards received by persons who immigrated to New York City since 1965? We find that immigrants with less than a high school education have higher labour force participation rates than the US‐born population in the same educational category and also have slightly higher earnings. Immigrants with a high school degree have labour force participation rates close to (or slightly higher than) the average for the US‐born population but their incomes are slightly lower than the average income for the US‐born population. Immigrants with a college degree have participation rates similar or slightly lower that those of the US‐born population while their earnings are significantly lower that those of US‐born college graduates.     

THE HETEROGENEITY OF IMMIGRANTS,HOST COUNTRIES' INCOME AND PRODUCTIVITY: A CHANNEL ACCOUNTING APPROACH

This article exploits changes in the distribution of immigrants across 20 Organization for Economic Co‐operation and Development countries from 1960 to 2005 in order to assess their contribution to income of destination countries. The non‐random sorting of immigrants across countries is addressed by using an instrumental variable strategy. The instrument is built by estimating a bilateral migration model incorporating exogenous origin country determinants of migration. Aggregate results reveal that immigrants have a positive effect on income that works primarily through total factor productivity (TFP). We further construct a novel dataset from censuses and labor force surveys to explore the information on the age of immigrants. Contrasting income effects are found across age groups: a higher share of immigrants among the youth has a negative impact on aggregate income, while a higher share of immigrants among prime‐aged workers has a positive effect. We interpret this disparity as short‐term versus medium‐term effects. Adjustments over time involve changes in TFP but also in the human capital of the native‐born. (JEL F22, J24, J31, O31)     

Foreign retirement income among new older immigrants in the United States

Older adults make up an increasing share of new legal immigrants to the United States. These immigrants are often financially dependent on family since they are often barred from receiving several US support programmes and are less likely to receive US retirement benefits than natives. However, little information exists as to whether they receive retirement income from abroad. Using the New Immigrant Survey (N=2,150), we find that only 8.1 per cent of older recent immigrants report receiving foreign retirement income. In logistic modelling, older immigrants from Asia and Latin America were less likely to receive retirement income from abroad than those from Europe (Odds ratio = 0.50, p<0.05; Odds ratio = 0.22, p<0.001, respectively). Results suggest that newly admitted older immigrants from Asia and Latin America face an additional economic disadvantage compared with older Europeans that cannot be attributed to their demographic and migration characteristics.     

The earnings of Asian male immigrants in the Canadian labor market

"The earnings of Asian-born immigrants in the Canadian labor market declined relative to the earnings of native-born workers between 1981 and 1986. Analysis of the labor market performance of immigrants from four regions of Asia--Southern Asia, South East Asia, Eastern Asia and Western Asia--shows that Asian immigrants are a heterogeneous group. However, changes in the birthplace composition of Asian immigrants cannot explain the fall in the relative earnings of the Asian aggregate. Attention is drawn to the switch in the distribution of immigrants across the admission classes as a possible explanation of this phenomenon."     

Understanding the Socioeconomic Status of International Immigrants in Chile Through Hierarchical Cluster Analysis: a Population‐Based Study

Immigration to Chile is not large (just under 2% of the total population) but has increased in recent years. This study aimed to analyse the socioeconomic status (SES) of immigrants in Chile and compare it with the Chilean‐born, by secondary data analysis of an anonymous nationally representative survey (CASEN, 2006). Immigrants are categorized into Low, Medium and High SES through hierarchical cluster analysis. Around 1 per cent of the total sample are international immigrants; an additional 0.7 per cent did not report their migration status. Self‐reported immigrants show great variability in their SES. Immigrants in the Low SES cluster appeared to be significantly younger than those in Medium and High SES, also more likely to be children, women and belong to an ethnic minority. Immigrants in the Low SES cluster appeared similar to the unemployed, poorest Chilean‐born but are more than eight years younger on average and more likely to be female. Immigrants to Chile are a unique group, with socio‐demographic characteristics that differ significantly from the Chilean‐born population, but there is great heterogeneity and complexity within this group. Cluster analysis provided a meaningful interpretation of the multidimensional concept of SES and allowed the identification of a vulnerable group of Low SES immigrants to Chile.     

The Impact of Immigrant Status on Home Ownership in Australia

This paper examines the impact of immigrant status on home ownership in Australia. It shows that the rate of home ownership for most groups of immigrants is comparable to that of the Australian born. As expected, recently arrived immigrants have relatively low probabilities of owning their own home. These results hold for both analyses pooled across movers and non‐movers, and for analyses restricted to those, both immigrants and the native born, who moved residence in the previous five years. A decomposition of the estimated coefficients of the model of tenure choice is developed. This is shown to enhance understanding of variations in rates of home ownership across birthplace groups.     

Aspects of occupational mobility and attainment among immigrants in Australia

The occupational distributions of the native-born and foreign-born in the Australian labor market differ greatly. The disparity between the occupational distributions is greatest among the middle age-bracket, and among immigrants from Eastern Europe and the Mediterranean region. Analysis of occupational attainment using unit record data from the 1981 Census shows that as duration of residence in Australia lengthens, the occupational distribution of the overseas-born converges toward that of the Australian-born. Moreover, birthplace groups differ in the degree of upward mobility associated with length of residence in Australia: immigrants from non-English-speaking countries tend to make greater occupational advances than their counterpart from English-speaking countries. This suggests a higher degree of international transferability of human capital skills among immigrants from English-speaking countries. The analysis also highlights the concentration of immigrants from non-English speaking countries in low-ranked occupations, and the relatively minor influence of education on the occupational attainment of immigrants from these birth place regions.     

Immigrant unemployment: the Australian experience

"Between 1980 and 1996 both male and female immigrants experienced higher unemployment rates than Australia-born workers....A multivariate analysis is used in this article to examine unemployment rate differentials between Australia-born and immigrants from English-speaking countries and immigrants from non-English-speaking countries. A feature of the analysis is decomposition of unemployment rate differences between birthplace groups into a component attributable to the different characteristics of the birthplace groups (e.g. different mean levels of education) and a part that is viewed as an impact associated simply with being foreign born." (EXCERPT)     

Correlates of welfare dependency among immigrants in Australia

"This article investigates some of the factors that are associated with welfare dependency among immigrants in Australia. It examines the role of factors such as gender, age, migration category, birthplace, period of arrival and educational background in explaining immigrants' dependence on government pensions and benefits as their main source of income." The author finds that there are "significant differences in welfare dependency...by birthplace and migration category even after controlling for age, education and employment status. Immigrants from Vietnam, Lebanon and Turkey were more likely than others to be dependent on welfare. Refugees were also more likely than other immigrants to be dependent on welfare; however the effect of refugee status on welfare dependency diminished with duration of residence in Australia."     

Onward Emigration to the United States by Canadian Immigrants between 1995 and 20001

Using data drawn from the 2000 US and the 2001 Canadian Censuses, this paper analyzes the onward emigration of Canadian immigrants to the US between 1995 and 2000. The characteristics of an estimated 48,336 Canadian immigrants who made an onward emigration from Canada to the United States are examined. This paper also seeks to determine whether onward foreign‐born emigrants are representative of immigrants in Canada and Canadian‐born emigrants to the US. Results indicate that onward emigrants are primarily young, married, possess a bachelor's degree, earn incomes of $100,000 US or greater, and reside in large immigrant‐receiving states and metropolitan areas.     

The Canada-United States joint immigration study: issues in data comparability

The Canada-US immigration project is an attempt to assess carefully the flows, trends, and characteristics of immigrants between the 2 countries. The primary focus for data is the census information derived from the 1980 US and 1981 Canadian censuses. Some observations of the comparison follow. 1) US-born immigrants tend to migrate later. 2) Immigrants have an older age structure than the total population. 3) The sex ratio pattern is similar with older migrants having lower ratios. 4) Immigration of elderly/retired is not a common pattern. 5) Changes in regional destinations is a basic feature of immigration flows. The destination of US immigrants shifted over time from northern states to southern states. Destinations of Canadian immigrants shifted over time from Quebec and prairie provinces to Ontario and British Columbia. 6) A higher proportion of US immigrants ever married and were widowed; higher proportions of Canadian immigrants divorced, and lower proportions separated. These aspects reflect age structure. 7) US immigrants' fertility is similar to the US population in general; Canadian immigrants' fertility is similar to the Canadian population in general. 8) US immigrants born in Canada have a considerably higher attainment. 9) Males aged 16-64 among US immigrants born in Canada have a consistently higher labor force participation rate. 10) Professional specialty occupations increase in importance in the 1975-1980 period in both countries. 11) Incomes of recent immigrants who were full-time, year-round workers from Canada or the US were well above the incomes of the native populations of either country. Comparability had to be examined in light of the variations built into the 2 censuses. Some of these issues are: 1) differences in sampling and collection methods, 2) differences in under/over-enumeration, 3) misreporting of country of birth, 4) differences in questions used, 5) different editing and imputation procedures applied, 6) variations in residence rules, and 7) the exclusion or inclusion of certain groups in the national census counts.     

Patterns of Intermarriages and Cross‐Generational In‐Marriages among Native‐Born Asian Americans

This article examines patterns of post‐1965 native‐born Asian Americans’ intermarriages and cross‐generational in‐marriages using a combined sample of the 2001–2006 American Community Surveys from the Integrated Public Use Microdata Series. The analysis focuses on ethnic and gender differences in intermarriage and cross‐generational in‐marriage rates and patterns. About 55 percent of native‐born Asian Americans are found to be intermarried while another 23 percent are married to 1.5‐generation or first‐generation co‐ethnic immigrants. Thus only 22 percent of native‐born Asian Americans are married to co‐ethnic native‐born Asian Americans. As expected, there are significant ethnic and gender differences in intermarriage and cross‐generational in‐marriage rates and patterns. This study is significant because it is the first study that has examined intermarriage patterns among post‐1965 native‐born Asian Americans, the majority of whom are likely to be children of post‐1965 Asian immigrants, using the most recent Census data available. It is also significant for studies of the new second generation in general in that it is the first study to show patterns of cross‐generational in‐marriage among members of the new second generation.     

Immigrant and Native‐Born Differences in School Stability and Special Education: Evidence from New York City1

Using the literature on achievement differences as a framework and motivation, along with data on New York City students, we examine nativity differences in students’ rates of attendance, school mobility, school system exit, and special education participation. The results indicate that, holding demographic and school characteristics constant, foreign‐born have higher attendance rates and lower rates of participation in special education than native‐born. Among first graders, immigrants are also more likely to transfer schools and exit the school system between years than native‐born, yet the patterns are different among older students. We also identify large variation according to birth region.     

Immigrants in the Old‐Age Pension System: The Case of Sweden

The article investigates incomes and especially state pensions 2008 among elderly immigrants who arrived in Sweden before 1970. At age 70 and above, the level of state old‐age pension for immigrant men was nearly the same and for immigrant women somewhat higher than for natives with similar characteristics. At age 65–66 the state pension was lower for immigrants than for their native counterparts. The differences in pensions for immigrants of different ages are probably due to changed rules in the Swedish state old‐age pension system from 2003. The new rules have hit different age groups in different ways. The gaps are partially levelled out when other incomes are included. The extent to which levelling occurs varies greatly between different immigrant groups. For immigrants who have arrived during the last decades, the future state old‐age pension outcomes are expected to be worse.

Policy Implications

• The Swedish Pensions Agency should set up a register of pensions from abroad. This will tell us to what extent old‐age pensions from the home country compensate for low old‐age pensions from the Swedish system.
• Better integration on the labour market is a powerful measure for reducing the risk of future low pensions among immigrants. This is a challenge for Swedish integration policy.
• To what extent can other parts of the Swedish welfare system in the future compensate individuals with low old‐age pensions?