Census data says you’ll make a lot more than your immigrant parents, but your kids won’t make as much as you | Toronto Star

The chart above breaks out the visible minority population by generation. While Black Canadians and Japanese Canadians have the highest percentage of third generation, the actual numbers are small for 25-54 years olds: about 24,000 and 12,000 respectively. The numbers of the other groups are all under 5,000 (many under 1,000), save for Chinese Canadians at just under 9,000.

Given the relatively small size, it may be premature to make this conclusion regarding the overall prospects for the third generation:

Children of immigrants make a lot more money than their parents but their kids won’t make as much as them, the latest census shows.

While visible-minority immigrants tend to earn less than their white immigrant counterparts, their kids more than make up the income gap between the two groups and also outperform their white peers in the second generation, according to a report by the Association of Canadian Studies based on 2016 census data.

Part of the study, to be presented at a national conference in March on immigration and settlement policies, examines the ethnic differences in after-tax incomes across first, second and third generations of immigrants by ethnicity in the prime working age between 35 and 44.

For immigrants — white or non-white — that upward socioeconomic mobility based on earnings fizzled by the third generation when all groups, except for the Korean and Japanese, made significantly less money than their second-generation parents.

According to Jack Jedwab, the report’s author, visible-minority immigrants made an average of $38,065 a year, compared to $47,978 earned by white immigrants.

Overall, children of visible-minority immigrants made a 47 per cent leap in their average earnings above their parents, making $55,994 annually, surpassing their white second-generation peers, who made $54,174 annually or 13 per cent more than their own parents. (The white group also includes those who self-identified as Aboriginal, who makes up 6.1 per cent of the group.)

While all children of immigrants of colour did better than their parents, some communities fared better than others.

Second-generation South Asians made the most progress, earning an average of $62,671, up from $38,978 from their immigrant parents. Their Chinese peers, who had the highest average annual income of all groups at $65,398, made 50 per cent more than first-generation Chinese immigrants who made $43,085.

 

“The entire second generation enjoyed a higher mobility though some communities were faring better than others,” noted Jedwab, who teaches sociology and public affairs at Concordia University.

The higher socioeconomic attainment, he said, can be partially attributed to immigrant parents’ expectations on their children to make up for the sacrifice they made for the move and seize on the better opportunities Canada has to offer.

“Education is certainly a key explanation and I would suggest that the value that children of immigrants attach to higher education is greater than is the case for the grandchildren of immigrants,” said Jedwab.

via Census data says you’ll make a lot more than your immigrant parents, but your kids won’t make as much as you | Toronto Star

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About Andrew
Andrew blogs and tweets public policy issues, particularly the relationship between the political and bureaucratic levels, citizenship and multiculturalism. His latest book, Policy Arrogance or Innocent Bias, recounts his experience as a senior public servant in this area.

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