Immigration.ca - Canada Immigration News - May 2007
A new study has revealed that, unlike in the United States, immigration is actually shrinking the gap between the highest and lowest earners in Canada. According to Montreal Gazette business columnist Jay Bryan, this phenomenon can be attributed to stark differences in immigration policy between the two countries.
In the U.S., the focus of immigration is toward reuniting families which has resulted in high levels of low-skilled immigration. These low-skilled workers compete for the low-skilled jobs, driving down wages while the market increases high-skilled wages. Thus, pay inequity gaps grow.
In Canada, on the other hand, immigrants are selected based on their skill level, which has attracted people with high education and work experience levels. The relative gains in high-skilled workers have, in fact, boosted the wages of the lower-skilled jobs, as they are experiencing more shortages and less competition for the positions.
The study, co-conducted by Statistics Canada and Harvard University, found that of all working males in Canada with post-secondary education, 38% were immigrants. In the U.S., that figure sits at less than 20%.
Sources:
http://www.canada.com/montrealgazette/news/business/story.html?id=735830f7-306c-41c0-9c23-99b9c5e1fdb0
http://www.canada.com/montrealgazette/news/business/story.html?id=a60ecfe7-73e2-48dc-88ba-75aece68959c
