Immigrant children tend to grow up to earn more than Canadian born
Immigrant children are twice as likely as Canadian children to come from low-income households, however, when the immigrant children grow up, they are more likely to get a post-secondary education and have greater salaries.
These findings are from a study that was recently done by Statistics Canada which looked at data from 2018 tax files. The study focused on the educational and labour market outcomes of immigrants who arrived in Canada as children before the age of fifteen (15).
By age twenty (20), around seventy percent (70%) of immigrants who arrived before age fifteen (15) are enrolled in a post-secondary institution. This is compared to fifty-six percent (56%) of the overall Canadian population. Women who immigrated as children make up the majority of the 70%.
It was reported that 25-year-olds in the overall population had a median salary of $29,700.00 per year, but 25-year-olds who immigrated as children were making an average of $30,300.00 per year. For 30-year-olds the median salary was about $41,800.00 for the overall population and $47,400.00 for immigrants the same age. This means that immigrant children grew up to make almost thirteen percent (13%) more per year than the overall Canadian population.
The differences in labour market outcomes are due to how the three (3) different classes of immigrants are admitted to Canada. The three (3) groups of immigrants are: economic class, family class, and refugee class.
Economic class immigrants are the largest category. These immigrants come through the Express Entry programs, Provincial Nominee Programs, Quebec’s Skilled Immigration, and other pathways.
Economic class immigrants get approved to come to Canada because of their ability to integrate into the labour market. These immigrants arrive in Canada with high levels of human capital – ie. young, middle aged, education level, language skills, and in-demand skills that address Canada’s economic needs. The children of economic class immigrants are likely to develop human capital characteristics that mirror their parents.
Family class immigrants may be sponsored by a Canadian who is the spouse, parent, or other family member of a foreign national.
Refugee class immigrants seek asylum in Canada.