Earnings Gaps between Native-Born Canadians and Immigrants: The Role of Firms in British Columbia, Ontario, and Quebec

A growing literature shows that earnings differentials are explained in part by the fact that workers from different groups sort differently into high-paying and low-paying firms or are paid differently within the same firm. In this article, we explore whether any differences exist in how those two different channels contribute to earnings differentials between immigrants and native-born Canadians in the provinces of British Columbia, Ontario, and Quebec, which account for more than 80 percent of all immigrants in Canada. We find a surprising degree of similarity across the three provinces in the way in which firms contribute to the immigrant–native-born earnings gap.