Does the place of education matter in reducing the difference in earnings between immigrants and native-born in Canada?

Abstract

Using the 2016 Canadian Census, this paper examines whether the place of education matters in reducing the wage difference between immigrants and native-born Canadians. The Mincerian equation has been utilized to show the effect of education on earnings. The result shows that the returns to education for immigrants is less than the Canadian born by 1.14% for males and 0.46% for females. A wage difference between immigrants and native-born was found to be 42% for males and 43% for females. Our findings suggest that a lack of foreign credentials recognition is the cause for the difference in earnings.