Distribution, Inequality and Concentration of Incomeamong Older Immigrants in Canada

While there are many studies on differences in earnings between immigrants and the native‐born or among immigrant groups, they do not consider distribution and concentration of income among immigrants explicitly. These aspects are important for understanding the distribution of economic welfare and consumer behaviour among members and hence are policy relevant. Using the 1991 Census data, the distribution and concentration of incomehave been examined among 15 broad birthplace groups for population aged55 years and over. About 19 per cent of males and 15 per cent of femalesreceive less than half the median income and obtain 5 per cent and 3 per centof the aggregate income respectively. About 30 per cent of males and29 per cent of females receive more than one and half times the medianincome and obtain 61 per cent and 59 per cent of aggregate incomerespectively. About 51 per cent of males and 56 per cent of females whoreceive incomes between half and one and half times the median income aretermed middle‐class and their shares of aggregate income amount to 34 and38 per cent respectively. Although older immigrants aged 55 years and over, as a group, have roughlythe same quartile distribution and concentration of income as theirCanadian‐born counterparts, the birthplace groups differ considerably.Those from the developing regions, that is, the groups that have loweraverage annual incomes, also have more inequitable distribution of incomethan the Canadian‐born or their counterparts from the developed regions. Thus, income distribution is more polarized in populations from developingregions than in populations from developed regions or in the Canadian‐bornpopulation. On average, females receive 45 per cent less income than males, and thereis less polarization of income among them than among males regardless ofthe place of birth. A part of the explanation lies in the receipt of government transfers, whichtend to equalize rather than polarize incomes, and older women derive ahigher proportion of their income from government transfers than older men.     

Reversal of Fortunes or Continued Success? Cohort Differences in Education and Earnings of Childhood Immigrants1

Using several years of Canadian census data, this study examines cohort differences in educational attainment and earnings among childhood immigrants who arrived in Canada between 1960 and 1989. Successive cohorts of childhood immigrants had increasingly higher university completion rates than their Canadian-born peers by age 25–34. We find that this lead was tempered by declining earnings of immigrant parents relative to Canadian-born parents, particularly among the 1980s cohort. Despite rising university completion rates, wages of male (but not female) childhood immigrants lagged behind those of their Canadian-born peers. This gap can be accounted for largely by the rising share of members of racial minority groups and the decreasing incidence of full-time employment.     

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?

     

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.     

Earning Disparities between Immigrants and Native‐born Canadians*

La contribution économique des immigrants est mesurée par l'am‐pleur de leurs salaires. Plus on diminue l'écart des salaires, plus les immigrants sont sensés se doter du capital humain. En utilisant les données du recensement de 1996, cet article compare des groupes d'immigrants avec des Canadiens de naissance de même sexe et de même origine raciale à quatre niveaux de la région métropolitaine de recensement, définie par la taille de la population. Les résultats indiquent que les immigrants de même sexe et de même origine raciale gagnent soit le même salaire sinon plus que leurs homologues canadiens. Cependant, en prenant en considération les variations dans le capital humain, l'expérience, les différences dans l'échelle urbaine, la taille de la population immigrante et le taux de chômage, tout groupe d'immigrants gagne moins que son homologue canadien. L'ampleur des salaires nets entre les immigrants et les Canadiens de naissance varie selon le sexe, l'origine raciale et moins ainsi selon le niveau de la région metropolitaine de recensement. Plusieurs fac‐teurs, dont les possibilités d'emploi inégales, touchent le salaire des immigrants. II n'est pas du tout évident de supposer que la teneur du capital humain des immigrants est inférieure alors qu'elle est déduite de la disparité de salaires. The economic contribution of immigrants is often measured by their earnings in that the closer they are to the earnings of native‐born Canadians and the more quickly immigrants can bridge the income gap, the more immigrants are assumed to be endowed with human capital. Using microdata of the 1996 census, this paper compares immigrant groups with native‐born Canadians of the same gender and racial origin at four levels of Census Metropolitan Area defined by population size. The findings indicate that immigrants of the same gender and racial origin earned either the same or more than their native‐born counterparts. However, when variations in human capital, experience, and other individual differences in work‐related characteristics and immigrant experience are taken into account, along with differences in urban scale, immigrant population size and unemployment rate, all immigrant groups earned less than their native‐born counterparts. The magnitude of net earning disparities between immigrants and native‐born Canadians varies, depending on gender, racial origin and less so on CMA level. The study suggests that many factors, including unequal opportunities, affect the earnings of immigrants, and that the assumption of immigrants' inferior human capital content inferred from earning disparities is tenuous at best.     

Immigration,labor force integration and the pursuit of self-employment

A correspondence analysis was used to examine the entire working life cycle of Canadian-born male age-education cohorts and immigrant male age-education cohorts who arrived during 1945-61. Data were drawn from the 1961 and 1971 census databases as well as the 1981 and 1991 public individual files. Findings support the existence of a split labor market based on immigrant status, particularly at the low end of the schooling spectrum. In 1961, immigrants with low levels of schooling were closely associated with the wage construction sector, whereas Canadian-born males below the high school level would most likely gravitate towards consumer services. Meanwhile, immigrants with a high school education were likely to be in consumer services; whereas, Canadian-born males with a high school education were closely aligned with public administration and distributive services. Moreover, immigrants with higher levels of schooling were less likely to work in ethnically dominated markets, while immigrants with low schooling moved into the self-employed construction sector. The existence of a split in the labor market was evident among workers with lower levels of schooling compared with university-educated workers.     

Within inequality characteristics and adaptation of immigrants in the United States

Until recently, in works of literature, the assimilation of immigrants had been viewed as an individualistic rather than a community-based process. However, Hatton and Leigh (2011) showed that immigrants integrate to their host country as communities, not as individuals; hence, group characteristics play as much of a role as individual characteristics in terms of adaptation. This paper introduces another dimension to the immigrant adaptation proxies that reflect community-based characteristics. The fundamental assertion of this paper is that inequality can be used as a proxy of adaptation within immigrant groups. Immigrant groups that exhibit income and education distributions similar to those of the natives can be regarded as well-adapted groups, while those who exhibit vastly different distributions should be considered to be groups with limited adaptation. Using the American Community Survey (ACS) 2010 cohort, this paper presents the initial findings of the within-group inequality of immigrants. Then, a cross-sectional regression analysis is employed to analyze the determinants of inequality across these immigrant groups. The results suggest that immigrant community-based characteristics, such as average income, education, and number of years that the immigrants have spent in the US, can indeed explain most of the variation in inequality.     

Improved legal status as the major source of earnings premiums associated with intermarriage: evidence from the 1986 IRCA amnesty

Exploiting a natural experiment, this paper uses the 1990 US Census data and the 1986 Immigration Reform and Control Act amnesty to investigate the major mechanism through which intermarriage influences immigrant earnings. My strategy involves comparing international marriage premiums received by two groups of Mexican immigrants who arrived before and after the cutoff date of eligibility. Both groups face similar language and culture related obstacles and have to adapt themselves to the new environment, except that unauthorized Mexican workers who arrived before 1982 could obtain legal status through the amnesty while those who arrived after the cutoff date obtained legal status through marriage to a US citizen. Instrumental variables estimates show a significantly larger intermarriage premium for Mexican immigrants who migrated after the cutoff date and no statistically significant intermarriage premium is found in the pre-1982 group. The 35 % premium gap indicates a large effect of intermarriage on immigrant labor market outcomes, operating primarily through an improvement of legal status.     

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.     

Between Two Worlds: Source‐Country Gender Roles and Gender Differences in Educational Attainment among Immigrant Children

Recent scholarship has focused on the relationship between source‐country characteristics such as female labor force participation, fertility, level of economic development, gender role attitudes, and immigrants’ labor market assimilation. These studies refer to national‐level factors when accounting for the vast differences in home‐country groups in labor market outcomes. This study asks to what extent these source‐country characteristics affect immigrant children's educational outcomes. Using data from the 2006 Canadian Census and World Values Survey, this article examines the extent to which the gender gap in educational attainment among immigrant children is associated with source‐country factors. Female child immigrants who come from countries with high female labor force participation and high levels of GDP have an advantage over their male counterparts in university education. Source‐country gender role ideology played a role in university completion rates for immigrant parents, but not for child immigrants.     

Immigrant and native fertility during the 1980s: adaptation and expectations for the future

Many immigrants have come to the US since the mid-1960s. The demographic effects of this phenomenon may be seen in both the changing racial and ethnic composition of the population and in the increasing contribution of immigration to sustaining population growth. Given the current below replacement level of fertility in the country, US population growth depends increasingly upon the entry of new immigrants each year and their subsequent fertility. Over much of the 20th century, immigrants had consistently lower fertility than native-born women. This situation changed, however, since the 1970s with the arrival of large numbers of immigrants from countries with high fertility. Studies based upon the US census have shown that, despite considerable variation according to country of origin, recent immigrants have higher fertility on average than native-born women. Moreover, the gap between immigrant and native fertility levels appears to have increased during the 1980s. By 1986, immigrant women aged 18-44 had about one-quarter child more than similarly aged native-born women. This article compares both the fertility behavior and expectations for future childbearing of foreign and native-born women in the US with the goal of analyzing the sources of the growing fertility gap between immigrant and native women, and exploring the extent to which immigrants adapt their fertility once in the US. Data are drawn from the 1980 US Census and the 1986 and 1988 June Current Population Surveys. The author found that the immigrant-native fertility gap increased during the 1980s, not because immigrant fertility increased, but because fertility dropped at a faster rate for natives than for immigrants. The relatively high fertility of immigrants compared to natives can be explained by compositional differences with respect to age, education, income, and ethnicity. The two analyses of adaptation, however, yielded different results. The synthetic cohort analysis, which traced the fertility behavior of a fixed cohort of immigrants during the 1980s, found little evidence of adaptation or assimilation, except for immigrants from southeast Asia. On the other hand, the analysis of fertility expectations suggests that although immigrants expect to have higher fertility than similar natives, they tend to adapt their fertility goals over time, both within and across generations.     

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 North American Naturalization Gap: An Institutional Approach to Citizenship Acquisition in the United States and Canada1

Using 1990 U.S. Census 5% PUMS and 1991 Canadian Census 3% public and 20% restricted microfiles, this article demonstrates the existence of a North American naturalization gap: immigrants living in Canada are on average much more likely to be citizens than their counterparts in the United States, and they acquire citizenship much faster than those living south of the border. Current theories explaining naturalization differences – focusing on citizenship laws, group traits or the characteristics of individual migrants – fail to explain the naturalization gap. Instead, I propose an institutional approach to citizenship acquisition. States' normative stances regarding immigrant integration (interventionist or autonomous) generate integrated or disconnected institutional configurations between government, ethnic organizations and individuals. Evidence from a case study of Portuguese immigrants living in Massachusetts and Ontario suggests that in Toronto government bureaucrats and federal policy encourage citizenship through symbolic support and instrumental aid to ethnic organizations and community leaders. In contrast, Boston area grassroots groups are expected to mobilize and aid their constituents without direct state support, resulting in lower citizenship levels.     

Is it Race,Immigrant Status,or Both? An Analysis of Wage Disparities among Men in the United States1

The intersection of race and immigrant status forms a unique social space where minority group members and immigrants are afforded or denied the privileges that are routinely accorded to native-born, non-Hispanic whites. Yet recent research on the intersection of race and immigrant status is inconsistent in its findings, limited to a small number of racial groups, and does not account for the geographic distribution of racial/ethnic groups. In this paper, we shed light on the intersection of race and immigrant status by answering two questions: (1) Do racial disparities in socioeconomic outcomes vary by nativity? and (2) Do native-immigrant disparities in socioeconomic outcomes vary by race? Using 2000 Census data linked to metropolitan area and sending country data, we find that racial disparities are similar and significant among natives and immigrants (Question 1). Asians, blacks, and Latinos fare significantly worse than their white counterparts in both the native and immigrant populations. Furthermore, our analysis of native-immigrant wage disparities by race reveals that the immigrant experience is considerably worse for Asians, blacks, and Latinos (Question 2). These groups also receive fewer wage returns to years spent in the U.S. and their wage disparities are magnified by the percentage of immigrants in a metropolitan area – whereas all whites receive a wage premium when living in an area with a larger share of immigrants. The results suggest that race and immigrant status work in concert to uniquely influence the social experience of immigrant minorities in the U.S.     

Predicting Earnings Among Immigrants To Canada: The Role Of Source Country

The current study examines the importance of country of origin in predicting the labour market earnings among recent immigrants to Canada. The authors argue that, in addition to individual‐level characteristics associated with immigrant capital, macro‐level features associated with immigrant origins must be taken into account when considering the economic performance of immigrants in their host country. Country‐level factors are said to accompany immigrants to their destination country, which generate disparities in the “quality” of immigrants’ human and social capital across origin groups, as well as differences in how they are received by the resident population. The present study uses random effects multilevel modelling to investigate the extent to which immigrant incomes vary randomly across source country while taking into consideration individual‐level characteristics selected on the basis of human capital, social capital, and discrimination theories. Multilevel regression analysis confirms that immigrant incomes indeed vary significantly by country of origin, though the effect is small. Furthermore, it is revealed that the gross domestic product (GDP) of the sending country explains much of the level 2 variability in the labour market earnings of recent immigrants, as well as the relationship between racial minority status and immigrant incomes. The practical significance and policy implications of these findings are discussed.     

The Changing Effect of Education on Asian Immigrants' Self‐Employment

This article examines whether the post‐1990 Asian immigrants have a lower likelihood of being self‐employed than their counterparts in the 1970s–1980s immigrant cohort. More important, it investigates whether the relationship between education and self‐employment changes across the two immigrant cohorts. The authors framed these questions in the context of the changing U.S. immigration policy and used the ethnic and class recourses thesis and the thesis emphasizing immigrants' disadvantages for employment in the general labor market as two major theoretical orientations. Data come from the 1990 Census 5 percent sample and the 2007–2011 American Community Survey 5‐year sample. Findings from logistic regression analyses show that the second‐cohort Chinese, Asian Indian, and Korean immigrants have a lower likelihood of being self‐employed than their first‐cohort counterparts. Findings further show that education has a positive effect on the likelihood of self‐employment for the first‐cohort Asian Indian, Filipino, and Korean immigrants. For the second cohort, education has a negative effect on the likelihood of self‐employment for all Asian immigrant groups. The authors discussed the implications of these findings and concluded that well‐educated second‐cohort Asian immigrants face fewer disadvantages in finding their occupations commensurate with their educational level in the general labor market than their first‐cohort counterparts.     

The Short Term Effects of Immigrant Students on the Educational Achievements of Native‐Born Students

Since 1989 nearly one million immigrants from the FSU have arrived in Israel. Although well‐educated on average, most of these immigrants lacked economic means. The purpose of the present study is to examine whether the presence of immigrants in schools affected the educational achievements of their Israeli‐born peers. We analyzed data pertaining to 8,288 Israeli tenth graders who attended 208 schools in 1994. Respondents' records were obtained from the Ministry of Education and the Bureau of the Census. Using hierarchical models we examined the effects of the proportion of immigrant students in a school and of their parents' education on the probability that Israeli‐born students in the school would earn matriculation certificates. Results did not yield evidence of any negative spillover effects on the educational achievements of the native students. Moreover, the presence of many immigrant students with high educational backgrounds increased the likelihood of Israeli‐born students earning matriculation certificates.     

Social Capital Investment and Immigrant Economic Trajectories: A Case Study of Punjabi American Taxi Drivers in New York City

Although the scholarship on social capital and immigrant economic incorporation has sufficiently documented how immigrants mobilize social capital in their search for employment which often leads to the formation of immigrant niches, how social capital is processed after immigrants acquire employment and its significance for the preservation of immigrant employment niches is less well explored. This paper addresses this gap in the literature with a case study of immigrant Punjabi taxi drivers in the New York metropolitan area. In particular, this study shows how a group of immigrant Punjabi taxi drivers mobilized social capital via embeddedness in co‐ethnic social networks and improved their working conditions – a process that must be considered in explanations of the Punjabi niche in the taxi industry for more than two decades. The study has implications for the relationship between social capital and the structure of the workplace or industry where immigrants are incorporated and its subsequent impact on immigrant economic trajectories. Further, this study contributes to the debate on the usefulness of ethnic communities for the adaptation of immigrant groups. Additionally, this research is relevant to the scholarship on the economic adaptation of South Asian (a subset of Asian Americans) immigrants, an understudied immigrant group in the United States.     

Self‐Selection and Economic Assimilation of Immigrants: The Case of Iranian Immigrants Arriving to Three Countries During 1979–1985

The study is designed to evaluate the impact of the interaction between patterns of immigrants' self‐selection and the context of reception at destinations on economic assimilation of Iranian immigrants who came to three countries during 1979–1985. For that purpose, we studied immigrants at the age of 22 or higher upon arrival by utilizing the 5 percent 1990 and 2000 Public Use Microdata files (PUMS) of the United States census, the 20 percent demographic samples of the 1983 and 1995 Israeli censuses of population, and the 1990 and 2000 Swedish registers. The results indicate that the “most qualified” immigrants – both on observed and unobserved variables – who left Iran right after the Islamic revolution, arrived in the US Their positive self‐selection led them to reach complete earnings assimilation with natives there. Iranian immigrants who arrived in Israel and Sweden did not achieve full earnings assimilation with natives. Of these two groups, a smaller immigrant‐to‐native gap in average earnings was found in Sweden, but in the same time Iranian immigrants in Israel were more positively self‐selected and showed better assimilation than their counterparts in Sweden. Market structure played a certain role in immigrants' earnings assimilation mainly in Sweden.