Who among South Asians does better in the Canadian economy?

Sandeep K. Agrawal, PhD, MCIP, AICPRyerson University

Purpose

• To develop profiles of both high- and low-income earners among Indian immigrants; and

• To compare and contrast economic conditions of Indian immigrants with those of other South Asians and Chinese immigrants.

Data

• LIDS: Landed Immigrants Dataset (2005)– Includes 100% sample of immigrants to Canada from 1980– Data is drawn from the Landing form submitted at the time of landing

• IMDB: Immigration Database – Tax File (Custom tables, 1985-2004)– Dataset links LIDS information with income information from Revenue Canada reported

during tax filing– Includes 55% of immigrants, and 69% of all immigrants of working age (defined by IMDB as

20-64)

• PUMF: Census Public Use Micro data (2001 & 2006)– provides individual demographic, social and economic information based on a 2.7% sample

of the Canadian population

• LAD: Longitudinal Administrative Databank (2008)– consists of 20% of taxfilers and their information provided to the Canada Revenue Agency.– Links T1 Family File, a cross-sectional file of all taxfilers and their families, with IMDB.

Historical Context: Pre-war Immigration policy• Earliest Indian immigrants arrived in 1887.• The Indian presence in Canada dates back

to the late 19th century, but prior to the postwar period Indian immigration to Canada was severely restricted

• The Komagata Maru incidence, 1914• 1952 Immigration Act: British (Isle)

subjects and French citizens were the “preferred classes”, with quotas for immigrants from India, Pakistan, and Ceylon (present day Sri Lanka) established at 150, 100, and 50 people per year.

Historical Context: Post-war Transformations in Immigration Policy• Between 1961 and 1967, Canada

repeals the explicit restriction to non-white immigration

• 1967: “point system” replaces place of origin preferences. Consequently, the composition of immigrants to Canada diversifies

• The removal of racial restrictions now allows increasing numbers of Indians to arrive

• Since 1980, the numbers of Indian immigrants have multiplied

• For other South Asians, it took another decade to increase their numbers

Source: LIDS 2005

1397512939

48674486

21749

35965

4156

0

5000

10000

15000

20000

25000

30000

35000

40000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Pakistani

Sri Lankan

Indian

Bangladeshi

Historical Context: Contemporary South Asian Communities in Canadian Cities

• Almost 3/4 million of the Toronto CMA are South Asians and could triple to 2.1 million by 2031.

• Today, Indian-born communities are prominent in several of Canada’s largest urban areas.

• Over a quarter of million Indian immigrants live in Toronto

Source: Census 20060

50000

100000

150000

200000

250000

Toronto Montréal Vancouver Calgary

China

India

Pakistan

Sri Lanka

Bangladesh

Socio-economic Characteristics:Religion and Mother Tongue• The ethnic diversity of Canada’s Indian-

born population is increasing – this is reflected by changing religious and linguistic traits.

• Although decreasing, in most large centers, Sikhs dominate the Indian-born population

• Punjabi remains the most widely spoken language, but has declined in recent years by 20%.

Source: LIDS 2005

Socio-economic Characteristics:Language Proficiency and Age • Since the mid-1980s, Indian

immigrants have become increasingly younger and more capable in English upon arrival

Period of Immigration

English-speaking %

French-speaking %

Neither %

1985-1989 34.6 0.1 64.91990-1995 35.6 0.1 63.81996-2000 49.2 0.1 50.42001-2003 57.3 0.1 42.1

Source: LIDS 2005

Socio-economic Characteristics:Immigration class• Since the early 1980s, the proportion of “family”

class immigrants has declined, while the proportions of “skilled workers” have increased.

• Among recent Indian immigrants, skilled workers now represent the majority of immigrants.

• Between 2000-04, Pakistan and Sri Lanka were top source countries for refugees in Canada, since then the numbers have come down dramatically.

• Sri Lankans came as refugees or through family class

Source: LIDS 20050%

10%

20%

30%

40%

50%

60%

70%

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Family

Business Class

Skilled Workers

Refugees

Other

Pakistanis

Indians

Sri Lankans

Socio-economic Characteristics:Education and Skills • Since the mid-1980s, Indian

immigrants have increasingly arrived with high educational qualifications: more than 40% have a Bachelor’s degree or higher.

• The majority of Indian immigrants is arriving with professional (42%) and skilled and technical (30%) occupational credentials.

Source: LIDS 2005

Employment Sectors

Canada% % LQ % LQ % LQ % LQ % LQ

Agriculture 1.8% 3.6% 2.01 0.4% 0.21 0.1% 0.07 0.0% 0.00 0.0% 0.00Construction 6.5% 3.1% 0.48 2.3% 0.36 1.5% 0.22 0.9% 0.14 0.0% 0.00Manufacturing 11.1% 22.1% 1.98 19.2% 1.72 12.7% 1.14 24.7% 2.22 15.5% 1.39Wholesale/Retail Trade 16.7% 16.0% 0.96 17.6% 1.06 22.8% 1.37 15.8% 0.95 18.1% 1.08Transportation and Warehousing 4.2% 7.3% 1.75 1.9% 0.44 4.4% 1.05 3.4% 0.81 0.6% 0.15Finance and Insurance 4.1% 4.5% 1.09 4.5% 1.09 5.5% 1.33 6.0% 1.44 3.5% 0.84Real Estate and Rental/Leasing 1.7% 1.0% 0.61 1.3% 0.77 0.6% 0.34 1.3% 0.81 0.3% 0.19Professional, Scientific and Technical Services 5.3% 6.4% 1.22 12.2% 2.31 8.8% 1.67 5.1% 0.96 7.0% 1.33Management of Companies and Enterprises 0.7% 0.6% 0.83 0.6% 0.86 0.3% 0.35 0.3% 0.36 0.0% 0.00Admin support, Waste Mgt. and Remediation 5.1% 11.8% 2.31 5.4% 1.07 15.7% 3.07 11.7% 2.29 11.1% 2.17Educational Services 7.6% 3.1% 0.40 4.7% 0.62 4.1% 0.54 2.6% 0.34 4.9% 0.64Health Care and Social Assistance 8.9% 4.8% 0.54 4.7% 0.53 4.5% 0.50 4.3% 0.49 3.8% 0.42Accommodation and Food Services 6.3% 7.4% 1.17 14.3% 2.25 8.7% 1.37 15.5% 2.44 27.3% 4.30All Others 19.9% 8.1% 0.41 10.8% 0.54 10.4% 0.52 8.4% 0.42 8.0% 0.40

BangladeshIndustry India China Pakistan Sri Lanka

LAD 2008

Emploment sectorsCa

nadi

an B

orn

Sri L

anka

Bang

lade

sh

Indi

a

Chin

a

Paki

stan

Cana

dian

Bor

n

Sri L

anka

Bang

lade

sh

Indi

a

Chin

a

Paki

stan

<= $30,000 >= $100,000

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

7.7%

18.3%

9.0%15.6% 14.4%

7.0%10.7%

16.4% 13.6%17.9% 17.6%

11.5%2.9%

3.0%

0.5%

7.7%1.1%

4.8%3.7%

3.5%

0.0%

4.4% 1.5%

2.6%1.7%

1.3%

1.5%

1.3%

1.6%2.7%

5.4%

14.5%

5.9%

8.7%8.5%

9.2%4.0%

2.6%

3.0%

3.7%

6.1%5.5%

6.7%

10.2%

16.4%

11.6% 21.0%

14.4%

6.6%

2.2%

1.2%

2.2%

2.7%2.8%

8.9%

9.0%

7.1%

8.4%

6.3%

8.7%

15.8%

28.2%

41.7% 9.5%26.8%

14.8%

3.9%

3.7%

4.0%

4.3%3.5%

3.7%

Manufacturing Transportation and Warehousing Finance and InsuranceProfessional, Scientific and Technical Services Health Care and Social Assistance Accommodation and Food Services

Income Trends of Indian Immigrants: Language Ability, Education, Age & Skills• Indian immigrants capable in English upon

arrival have substantial higher incomes than those with no official language ability on arrival

• Entering Canada at a younger age seems to improve one’s income.

• The vast majority of high income earners have a Bachelor’s degree or higher.

• The majority of low-income earners have limited educational qualifications upon entry, but a significant number are also well-educated.

• Experience and expertise in managerial, professional and skilled and technical occupational dominate the high income bracket.

Source: IMDB

Trends in the high income group: Indian, other SAs and Chinese

• With time, Chinese attain high income categories and their numbers not only surpass their Indian and other South Asian counterparts as well as the immigrant and Canadian average.

• Chinese-born immigrants of 1990-95 cohort converge, and surpass, the general Canadian rate of affluence within 10 years.

• At high-income levels, Pakistanis have done better than Indians.

• Sri Lankans and Bangladeshis lag behind. Employment Income Trend of Indian and Chinese Immigrants

3.7%

2.1%

2.0%

7.1%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1996 1997 1998 1999 2000 2001 2002 2003 2004

India

Pakistan

Bangladesh

Sri Lanka

China

All immigrants

1990-95 cohort

6.2%

4.7%

7.3%

5.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

India

Pakistan

Sri Lanka

China

All immigrants

1985-89 cohort

Source: IMDB

1996-00 cohort

Income Trends of Indian Immigrants, 1985-2003• Indian-born families are much poorer

than the Canadian-born average.• Indian immigrants experienced

substantial decline in the numbers of the lowest income earners. The upward trend appears to be marginal.

• Substantial decline of low incomes with continuous growth of the higher income groups.

• “Glass ceiling” effect: greatest increase in >50K income bracket.

• Poverty among Pakistanis, Bangladeshis % Sri Lankans decreases over time, but not so much. No significant increases in other higher income categories.

Income Composition Among Indian Immigrants Arriving 1985-1989

Source: IMDB

58.3%

39.2%40.2%

41.5%

13.8%

6.2%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Less than $15,000

$15,000 to $49,999

$50,000 to $79,999

$80,000 to $250,000

Income Composition Among Pakistani Immigrants Arriving 1985-1989

59.5%

26.9%

38.6%

52.6%

1.6%

14.4%

0.2%

6.1%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Less than $15,000

$15,000 to $49,999

$50,000 to $79,999

$80,000 to $250,000

Comparing Indians with other SAs and Chinese

• A relatively high number (19%) of Sri Lankans with less than 13 years of education in >80K income category.

• 22% Sri Lankans with minimal skills are in high income category as well. (opposed to the idea that economic return of ethnic economy is much less)

• Chinese with weak English-speaking ability have done better than their Indian-born counterparts (13.3% vs. 6%)

– 1/3 of all Chinese work in ethnic economy.• Significant number of highly educated Bangladeshis

and Pakistanis are in low income groups.• A significantly high number of professionals in low

income category among all immigrant groups.

  English Non-official Language

Immigrants 84.5 5.4

Indian 87.6 7.8

Chinese 64.5 30.5

Languages Used Most Often at Work

Source: Census of Canada PUMF 2001

Source: IMDB

  English Non-official Language

Immigrants 87.4 7.3

Indian 91.9 11.7

Chinese 73 28.8

Pakistanis 98 4

Languages Used Most Often at Work

Source: Census of Canada PUMF 2006

Immigrants Bangladeshi Immigrants Chinese Immigrants Indian Immigrants Pakistani Immigrants Sri Lankan Immigrants

Less than$15,000

More than$80,000

Less than$15,000

More than$80,000

Less than$15,000

More than$80,000

Less than$15,000

More than$80,000

Less than$15,000

More than$80,000

Less than$15,000

More than$80,000

Less than 13 years 63.5% 10.0% 49.6% 0.0% 47.9% 4.2% 65.9% 6.7% 50.8% 5.9% 71.1% 19.0%Bachelor's or higher 15.3% 65.5% 32.5% 76.2% 29.0% 85.0% 21.7% 79.2% 35.9% 80.2% 4.5% 37.3%

Elemental Labourer 15.9% 2.3% 12.5% 0.0% 8.9% 3.1% 4.5% 0.0% 6.5% 0.0% 56.2% 21.9%Professional/Skilled 54.3% 83.9% 70.2% 79.5% 73.9% 92.5% 54.7% 89.2% 79.2% 92.4% 20.8% 60.7%

English (English Only) 45.3% 78.8% 60.9% 94.8% 30.1% 84.0% 31.5% 92.4% 60.7% 94.3% 64.0% 89.2%Neither English nor French 46.3% 8.5% 37.4% 0.0% 69.1% 13.3% 68.1% 6.0% 38.6% 4.0% 34.7% 7.8%

Enter before 34 73.9% 65.1% 76.9% 52.9% 56.5% 70.1% 68.2% 66.3% 71.6% 64.7% 76.0% 68.0%Enter 34 and over 26.1% 34.9% 22.7% 32.0% 43.5% 29.5% 31.8% 33.1% 28.3% 35.2% 24.0% 28.3%

Conclusion

• Two broad streams - one group who find their footing quickly, progressively earning higher incomes with time and, another that appears to not experience much upward mobility even after several years in Canada.

• Indian (and other) immigrants who enter Canada before they are 34 years old with a university degree and the ability to speak at least one official language are more likely to earn higher incomes.

• While many Indian (and other SA) immigrants have done very well, they include a significantly higher proportion of low-income families and unemployed adults compared with the Canadian-born population.

• A clear labour market segmentation in the Indo-Canadian community.• When compared Indian immigrants, every cohort of Chinese immigrants did better in the

Canadian economy than their Indian counterparts.• Pakistanis in high income groups have done better than all other South Asian immigrants.

Conclusion …continues

• Two different paths to success• Almost all Indian high-income earners are skilled workers with university education

and ability to speak English.• Many Chinese high income earners have limited proficiency in speaking English.

They are most likely to work within Chinese ethnic economy. Strong transnational linkages

• Many Sri Lankan high income earners come with low skills and/or low education. Perhaps they also work within their own ethnic economy.

– Transnational professionals and entrepreneurs

Limitation and Future Research

• Limits of the study– Self-employment income– Family as an economic unit

• More meaningful use of the Longitudinal Immigration Database (LAD)

• Wealth and assets other than earnings • Qualitative research to document life and career experience of high

income individuals and families.