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Immigration, Ethnic Wage Differentials and Output Pay: Evidence from the Workplace and Employee Survey

Date: Thursday, June 16th, 13:30

Location: B512, Tong Bo Building, Liu Lin Campus

The public lecture

Given by

Chair Professor: Fang Tao

Memorial University of Newfoundland


Accounting for immigration and language causes the measured ethnic wage differential in Canada to move in favor of ethnic minorities.  After such an accounting, minority women on output pay are shown to earn more than non-minority women. While the differential often remains negative for minority men on time rates, it becomes insignificant in our most narrow comparison. Despite this, there exists no evidence from simple probit estimates that minorities select into the output pay sector.  A structural selection model indicates that although the more favorable wage treatment of the output pay sector tends to attract minorities, their minority status itself cancels this out.  We suggest this constellation of results fits a model in which output based pay makes earnings discrimination against minorities less likely causing employer prejudice to be translated into denying them such employment in the first place.

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