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Chinese Immigrants in Canada: Their Changing Composition and Economic Performance

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Chinese Immigrants in Canada: Their Changing Composition and Economic Performance. Context Conceptual Framework Data Sources Changes in Composition Economic Performance Concluding Remarks. Context (1).

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chinese immigrants in canada their changing composition and economic performance
Chinese Immigrants in Canada:Their Changing Composition and Economic Performance
  • Context
  • Conceptual Framework
  • Data Sources
  • Changes in Composition
  • Economic Performance
  • Concluding Remarks
context 1
Context (1)
  • The Chinese have become the largest group of immigrants in Canada. They account for 20 per cent of Canada’s total immigration in-take, and the Chinese language has become the third-most-spoken language in Canada.
context 2
Context (2)

Push Factors:

  • Late 1970s, Mainland China began to relax its restrictions on the exit of Chinese citizens.
  • Also late 1970s, anti-Chinese sentiments in Vietnam pushed a large number of Chinese Vietnamese to flee their adopted homeland.
  • In 1984, China and the UK reached agreement for Hong Kong to be returned to China in 1997.
  • In 1985, the federal policy of admitting business immigrants was expanded to include investors, entrepreneurs and self-employed persons.
  • The 1989 student movement in China,
  • In the 1990s, the Chinese government eliminated most of the remaining restrictions on the exit of its citizens.
context 3
Context (3)

Pull Factors:

  • Canada’s potential economic opportunities (both business and employment)
  • Canada’s stable political environment and democracy
  • Canada welcomes them because of their potential to contribute to the country’s economic growth and population growth
context 4
Context (4)

Internal Differences

  • Recent Chinese immigrants to Canada have come from different origins with varying political, social, and economic conditions.
  • Chinese immigrants are not a uniform group, and significant internal differences exist.
  • Although immigrants from Mainland China, HK and Taiwan are all Chinese in ethnicity, their political tendencies, social values, and economic behaviour are markedly different.
  • While they all report Chinese as mother tongue, they use different characters and different dialects written and oral communications.
  • Differences between immigrants from the Mainland, HK and Taiwan on the one hand, and those from the rest of the world on the other, are even greater.
  • These background variations have differentiated them into different segments within the political, cultural, and economic realms in Canada.
context 5
Context (5)

Purpose of the Study:

  • Analyze the changing composition of the Chinese immigrants who were admitted to Canada in the last two decades to reveal their internal differences
  • Examine their economic performance in Canada.
  • Intend to answer such questions as:
    • which group of Chinese performs better in the Canadian labour market?
    • What does it take for the Chinese to achieve full integration?
conceptual framework
Conceptual Framework
  • wealth-maximization thesis(Borjas 1988 and 1993; Mueller 1999)
  • human capital thesis(Friedberg 2000).
  • upward-mobility thesis
  • concept of assimilation (Friedberg 2000).
  • concept of integration (Breton 1992; Burstein and Duncan 2003)
  • economic discrimination (Henry and Tator 2006; Weinfeld 1990)
suggested explanations for widening income gaps
Suggested explanations for widening income gaps
  • Changes in sources of immigrants
  • inability of immigrants to have their credentials recognized and transferred to the Canadian labour market
  • the lack of language and communication skills
  • recent changes in both the Canadian economy and the characteristics of the native-born population.
  • geographical variations in economic structure and level of development,
data sources 1
Data Sources (1)
  • Two administrative datasets in the IMDB: LIDS and tax data.
  • Mother tongue is used as the defining factor.

An immigrant was defined as Chinese if any of the following dialects was reported as mother tongue

    • Cantonese: 488,296 61.2%
    • Mandarin: 198,946 24.9%
    • Chinese: 68,035 8.5%
    • Hakka: 1,245 0.2%
    • Shanghai: 137 <0.1%
    • Other Chinese dialects: 40,994 5.1%
    • Total 797,653 100%
data sources 2
Data Sources (2)
  • Tax data are for the 1999 tax year
  • 343,890 Chinese immigrants were captured (accounting for 53 per cent of all the Chinese immigrants).
  • 185,525 reported employment income, 31,620 reported self-employment income, and 174,495 reported investment income.
data sources 3
Data Sources (3)

This study differs from census-based studies in two ways:

  • LIDS data contain the important characteristics of immigrants at the time of landing
  • Income derived from tax returns is more accurate than that contained in the census.
table 3 chinese immigrants in canada by educational qualifications and origin 1980 2000
Table 3: Chinese Immigrants in Canada by Educational Qualifications and Origin, 1980-2000
table 4 chinese immigrants in canada by canadian official language proficiency and origin 1980 2000
Table 4: Chinese Immigrants in Canada by Canadian Official-Language Proficiency and Origin, 1980-2000
Table 5 Average Income of Chinese Immigrants and as Percentage of Income of the Canadian General Population*, 1999 ($)
Table 7 Average Income of Chinese Immigrants by Education Qualification and Canadian Languages Ability, 1999 ($)
concluding remarks 1
Concluding Remarks (1)
  • The 2001 census once again points to the importance of immigration for Canada. It has been projected that there could be a deficit of one million skilled workers in Canada in the next 10-20 years. Chinese immigrants make an important contribution to fulfilling Canada’s immigration goals and needs.
concluding remarks 2
Concluding Remarks (2)
  • In the past two decades, the number of Chinese immigrants to Canada increased significantly, and their composition changed considerably.
  • Since 1997, Hong Kong has no longer been a main point of origin, and immigrants from both Taiwan and Vietnam have been on decline. In the meantime, those from Mainland China have been increasing steadily, making Mainland China the largest single source of Chinese immigrants. In the near future, it is expected that most new Chinese immigrants to Canada will continue to come from Mainland China.
concluding remarks 3
Concluding Remarks (3)

In addition to the shift in origin, there have been other important changes in the composition:

  • Economic immigrants have been on the rise
  • The proportions of both family immigrants and humanitarian immigrants have declined.
  • The rising number, as well as proportion, of economic immigrants has been accompanied by an increase in both educational qualifications and Canadian language proficiency.
  • Recent Chinese immigrants also have been younger, with nearly half in the age group of 25-44, the most productive years in their life.
  • All these changes have meant that the recent Chinese immigrants have brought with them increased human capital, and Canada has been gaining higher-quality workers by admitting Chinese immigrants into this country.
concluding remarks 4
Concluding Remarks (4)

Despite their increased human capital, Chinese immigrants still have experienced very different economic outcomes in the Canadian labor market.