Human capital quality and the immigrant wage gap

Table 4 Decomposition of Immigrant Wage Gaps

	*Males*				*Females*
	Model 1		Model 4		Model 1		Model 4
	Wage gap	\|t\|	Wage gap	\|t\|	Wage gap	\|t\|	Wage gap	\|t\|
Observed gap ^a	-0.041	20.0	-0.041	20.0	-0.033	16.4	-0.033	16.4
Explained gap	0.156	109.	0.156	109.	0.115	71.3	0.115	71.3
Schooling	0.059	78.8	0.059	78.8	0.027	27.9	0.027	27.9
Work experience	0.032	59.7	0.032	59.7	0.033	61.7	0.033	61.7
Language	0.004	3.61	0.004	3.61	-0.001	0.75	-0.001	0.75
Others^b	0.061	87.2	0.061	87.2	0.056	85.0	0.056	85.0
Unexplained gap	-0.197	91.4	-0.074	5.49	-0.148	67.0	-0.002	0.19
Schooling	-0.184	19.2	-0.141	8.50	-0.363	34.9	-0.272	18.3
Work experience	-0.147	19.1	-0.064	5.68	-0.148	20.2	-0.041	4.23
Language	0.025	2.18	-0.008	0.67	0.006	0.48	-0.017	1.43
Others^c	0.109	6.21	0.139	5.24	0.357	19.6	0.329	14.0
Immigrant specific effects			-0.124	9.92			-0.145	18.3
Country of birth fixed effects			0.022	9.18			0.015	6.75
Human-capital quality (total)			-0.147	12.2			-0.160	17.6
Country of birth’s GDP direct effect			0.007	0.69			0.010	1.22
Schooling quality (total)			-0.077	9.62			-0.105	17.8
Years of foreign schooling			-0.008	0.73			-0.025	3.66
Foreign diploma fixed effects			0.017	4.07			-0.005	1.33
Country of birth’s GDP education effect			-0.087	12.1			-0.075	14.4
Work experience quality (total)			-0.076	21.2			-0.065	27.3
Years of foreign work experience			-0.046	6.90			-0.057	11.6
Country of birth’s GDP work experience effect			-0.030	4.69			-0.007	1.58

^aDifference between the log of weekly earnings of immigrants and that of Canadian born workers.
^bThe category Others include the Region of residence, Urban area, Married and the Constant term variables.
^cThe large contribution of the Others set of variables to the female immigrant wage gap is mostly due to the large difference between the estimated constant term coefficient in the immigrant female regression and that in the Canadian born female regression (see Table B 2 in Appendix B).