Impacts of human capital variables on earnings of immigrants and non-immigrants in Canada : 1996 and 2006

Abstract

The purpose of this study is to analyze the impacts of education and post schooling labour market experience on wage differential between immigrants and non-immigrants in Canada, with particular focus on those who have completed university education. The analysis is based on microdata obtained from 1996 and 2006 Censuses of Canadian population. Human capital earning models are estimated separately for immigrants and non-immigrants and also by gender. Both human capital variables of education and post schooling experience positively affect the earnings of immigrants and non-immigrants before and after adding controls for demographic and labour market variables and province of residence. Immigrants are rewarded lower for their university education than non-immigrants. Married status has statistically significant effect on earnings, where married status has negative effect on earning of a female. A married woman earns lower wage than a married man among both immigrants and non-immigrants. The disadvantage of being a visible minority decreases from 1996 to 2006 for both male immigrants and non-immigrants.