http://www.statcan.ca:8096/bsolc/english/bsolc?catno=11F0019MIE2005241

Ethnic neighbourhoods and male immigrant earnings growth: 1981 through 1996

This paper examines the effect of ethnic neighbourhoods on wage growth as
well as other labour market outcomes of immigrant men in Canada using the
1981, 1986, 1991 and 1996 Censuses. While the primary measure of
affiliation is country of birth, ethnicity, language and visible minority
status are also examined to determine the robustness of the findings.
Consistent with U.S. findings, ethnic neighbourhoods based on country of
birth are found to have a negative impact on the ten-year wage growth of
immigrants. Further, the model for wage growth is found to be robust to
different lengths of time and different base years as well as the
specification of language and ethnicity as the affiliation grouping. Using
country of birth as the affiliation index, exposure is also found to have a
negative impact on the growth of total and weekly earnings as well as the
initial wages of entry cohorts. While little evidence is found on the
effects of ethnic neighbourhoods on changes in employment, a negative
effect of exposure is found on entry employment rates of the most recent
landing cohorts. Although the overall effect of ethnic neighbourhoods on
wage growth is negative, ethnic neighbourhoods are found to have a
divergent effect on different landing cohorts, having a positive impact on
the wage growth of the more recent cohorts and a negative impact on earlier
cohorts.

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