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Table 4 Decomposition of Immigrant Wage Gaps

From: Human capital quality and the immigrant wage gap

  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
  Othersb 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
  Othersc 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
  1. aDifference between the log of weekly earnings of immigrants and that of Canadian born workers.
  2. bThe category Others include the Region of residence, Urban area, Married and the Constant term variables.
  3. 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).