Second-Generation Canadian Immigrants Out-Earn their Parents
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By: Nicky Van Zyl

March 29th, 2018

Second-Generation Canadian Immigrants Out-Earn their Parents

The Association of Canadian Studies 2016 report revealed that second-generation Canadian immigrants have higher income levels than their parents. The findings support the idea of families migrating to Canada to offer a better and brighter future to their children.

The Findings

 

  • First-generation visible-minority immigrants earn significantly lower than white immigrants, reflecting the advantages enjoyed by those moving to Canada from reasonably developed countries.
  • Across all ethnic communities, second-generation immigrants earn the most. Second-generation immigrants outperform not just their parents, but their peers among white immigrants too.
  • Income levels decrease slightly for third-generation immigrants (for white as well as visible minority immigrants.) The only exceptions to this norm are immigrants from Korea and Japan.

Average Earnings by Immigrant Generation  

  • First-generation visible-minority immigrants earned an average income of C$38,000, while white immigrants earned approximately C$48,000.  
  • Second-generation immigrants across all ethnic communities earn the most at C$56,000, a 47% jump in annual income compared to their parents. This jump is significantly higher among children of South Asian immigrants. Their annual incomes rose by more than 60% – just above C$62,650.
  • Third-generation (except for Koreans and Japanese) sees an 18% drop in annual income.

Why the Jump in Salary?

 

The report attributes the efforts of first-generation parents to ensure their children take full advantage of what Canada has to offer. For example, world-renowned Canadian universities and great scholarship programs.     

 

So, what is the reasons for the fall in income of third-generation? The first generation holds on to traditional values, the second generation seeks to embrace Canadian values and traditions, emphasizing freedom of choice. However, the third generation, owing to the relative prosperity of their parents, can choose to simply ignore the high expectations in their community, something their parents or grandparents could not.

Overall Findings for Canadian Immigrants

Immigrants enjoy upward social and economic mobility in Canada. Another aspect of the report revealed that the children of immigrants outperform children from Canadian-born parents in education and are more likely to start businesses and employ many Canadians. Just another way immigrants in Canada add to the country’s economy.  

 

Want a better future for your family? Find out if you are eligible to enter the Canadian Express Entry stream today!