EARNINGS DYNAMICS OF FOREIGN BORN SOUTH ASIANS, CANADA

Abstract
The paper uses the Master File of the 2006 Census to investigate the earnings of the largest visible minority group, South Asians, in Canada. Unlike the previous research which invokes a homogenous South Asian identity, the focus is on the various South Asian ethnic groups. The findings show that Indian, Pakistani, Sri Lankan and Bangladeshi men and women do not share the same labour market experiences. Overall, after the control of socio-demographic, human capital and work related consideration, each of the South Asian ethnic groups has substantially reduced earnings penalty associated with their ethnic status in comparison to White counterparts, though the earnings gap remains significant.
In terms of gender, separate analysis reveals that relative to whites, South Asians women have shown better labour market outcomes than in the case of South Asian men. The differential impact of various factors on the earnings, however, signals that some women are confronted with a relatively more conservative environment which may impede their economic mobility. Nevertheless, a greater influence of human capital on the earnings of both men and women highlights the need in policy shift to better accommodate human capital of immigrants.
Ker word: Integration, South Asians, Ethnic status, Human capital