The Immigrant Wage Gap in Canada: Differences between the Public and the Private Sector

Preprint OPEN
Serge Nadeau (2013)
  • Subject: Wage differentials, immigrants vs. Canadian-born individuals, public vs. private sector, switching regression model,immigration policies
    • jel: jel:J20

This paper uses 2006 Canadian census data to examine patterns of wage differentials between immigrants and Canadian natives across the public and private sectors. Results reveal that the wage gap is much more a private sector issue than a public sector issue: the average wage gap is in favour of Canadian natives in the private sector but in favour of immigrants in the public sector; compared to natives, immigrants earn significantly less per year of domestic schooling and per year of domestic work experience in the private sector than in the public sector; foreign schooling and foreign work experience are less rewarded in the private sector than in the public sector; and, immigrants from non-traditional source countries are more at a disadvantage in the private sector than in the public sector.
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