In Simple Words
Imagine two runners starting a marathon 100 meters behind the lead pack. In past races, trailing runners caught up to the leaders by the halfway mark because their running pace naturally accelerated over time. In modern races, however, trailing runners remain stuck 100 meters behind for the entire 26 miles because structural hurdles along their lane continuously limit their ability to gain ground.
Observed immigrant wage gaps in Canada
- Arrived before the 1970s
- Gap often closed after 10–15 years
- Arrived in the 1990s
- About 25% lower wages even after 2005
Historical cohorts compared with non-immigrants. Earlier arrivals: 10–15 years of residence; 1990s arrivals: observed even after 2005. Different observation periods, not a causal decade effect.
See source →Research question
Historically, initial wage penalties faced by new immigrants decayed over time as workers acquired host-country language skills and local experience, achieving wage parity with native-born peers within 10 to 15 years. Modern immigrant cohorts, however, experience persistent wage gaps that fail to close over time, refuting traditional models of automatic long-term labor market integration.
Participants
Microdata analysis from Statistics Canada census filings (2006 Canadian Census public-use files and historical longitudinal cohort data from Frenette & Morissette 2005).
Study Design
Longitudinal and cross-sectional cohort comparison tracking entry earnings and 10 to 15 year wage trajectories of immigrant cohorts arriving in the 1970s versus the 1990s relative to native-born workers.
Results
Immigrants arriving prior to the 1970s eliminated their wage gap within 10 to 15 years. In contrast, immigrants arriving in the 1990s maintained a 25% lower median wage compared to native-born workers even after 10 to 15 years of host-country residence, despite holding substantially higher post-secondary degree completion rates.
Takeaway
Policy researchers must redesign labor market assimilation models to address permanent structural barriers rather than relying on time-in-country to eliminate immigrant earnings disparities.
Source and citation
See source →Read alongside the research
Plain-English glossary
Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.
- Median
The middle number after arranging the values from smallest to largest. If there are two middle numbers, use their average.
ExampleFor the values 2, 4 and 12, the middle value is 4. The median is 4.
NIST · Measures of location ↗Read more about median →