ARCHIVED – Social Capital and Wages - Outcome of Recent Immigrants to Canada

9. Appendix

Table A.1. Definitions of Social Capital and Wages Outcomes Estimation Variables

Dependent variable

  • Log of real weekly wage: Weighted Mean

Independent variables

Immigration category
  • Family: 1 if LR is in Family class, 0 otherwise. (Reference category)
  • Skilled Workers (PA): 1 if LR landed as a Skilled Worker principal applicant, 0 otherwise
  • Skilled Workers (S&D): 1 if LR landed as a Skilled Worker spouse and dependant, 0 otherwise
  • Refugees: 1 if LR landed as a Refugee, 0 otherwise
  • Others: 1 if LR landed in a immigration category other than Family Class, Skilled Workers (principal applicants and spouses and dependants) and Refugees, which mostly consists of business immigrants in economic class.
Demographic variables
  • Age: Age in years
  • Age Square: Age square/100
  • Married: 1 if LR is married or living with a common-law partner, 0 if LR is single, separated or divorced, or widowed
Province of residence
  • Atlantic Provinces: 1 if LR is living in Atlantic provinces:
    New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, 0 otherwise.
  • Quebec: 1 if LR is living in Quebec, 0 otherwise.
  • Ontario: 1 if LR is living in Ontario, 0 otherwise. (Reference category)
  • Manitoba and Saskatchewan : 1 if LR is living in Saskatchewan or Manitoba, 0 otherwise.
  • Alberta: 1 if LR is living in Alberta, 0 otherwise.
  • BC: 1 if LR is living in British Columbia, 0 otherwise.
Census metropolitan areas (CMAs)
  • Toronto: 1 if LR is living in Toronto, 0 otherwise.
  • Montreal: 1 if LR is living in Montreal, 0 otherwise.
  • Vancouver: 1 if LR is living in Vancouver, 0 otherwise.
  • Ottawa-Hull: 1 if LR is living in Ottawa-Hull, 0 otherwise.
  • Calgary: 1 if LR is living in Calgary, 0 otherwise.
  • Not in the Big 5 CMAs: 1 if LR is living in an area other than the big 5 CMAs, 0 otherwise.
Region of birth
  • Asia and Pacific: 1 if region of birth is Asia and Pacific, 0 otherwise.
  • North America, UK and Western Europe: 1 if region of birth is North America, UK and Western Europe, 0 otherwise. (Reference category)
  • Central and South America: 1 if region of birth is Central America and South America, 0 otherwise.
  • Europe except UK and Western Europe: 1 if region of birth is Europe except UK and Western Europe, 0 otherwise.
  • Africa and Middle-East: 1 if region of birth is Africa and Middle-East, 0 otherwise.
Population group
  • White: 1 if LR is white, 0 otherwise. (Reference category)
  • Chinese: 1 if LR is Chinese, 0 otherwise.
  • South Asian: 1 if LR is South Asian, 0 otherwise.
  • Black: 1 if LR is Black, 0 otherwise.
  • Filipino: 1 if LR is Filipino, 0 otherwise.
  • Latin: 1 if LR is Latin, 0 otherwise.
  • West Asian and Arab: 1 if LR is West Asian and Arab, 0 otherwise.
  • Other Asian: 1 if LR is other Asian---South East Asian, Korean, Japanese, 0 otherwise.
  • Other Visible Minority: 1 if LR is other visible minority---Visible minority n.i.e., Multiple visible minorities, White and visible minority, 0 otherwise.
Languages
  • English: 1 if LR has the knowledge of English (speaking fairly well or better), 0 otherwise (poorly or none).
  • French: 1 if LR has the knowledge of French (speaking fairly well or better), 0 otherwise (poorly or none).
Education
  • High school diploma or less: 1 if LR has a master's degree or above, 0 otherwise.
  • Some post-secondary education: 1 if LR has a bachelor's degree, 0 otherwise. (Reference category)
  • College diploma or some university: 1 if LR has a college diploma or some university education, 0 otherwise.
  • Bachelor's Degree: 1 if LR has some post-secondary education, 0 otherwise.
  • Master's degree or above: 1 if LR has less than high school education or a high school diploma, 0 otherwise.
  • Currently in school: 1 if LR is in school at the time of the interview, 0 otherwise
Experience
  • Had work experience before landing: 1 if LR had work experience before landing, 0 otherwise
  • Number of weeks in Canada after landing: Number of weeks in Canada
  • Number of weeks in Canada after landing2: (Number of weeks in Canada) square/100
  • Had an arranged job upon landing: 1 if LR had an arranged job when landing, 0 otherwise
  • Visited Canada before landing: 1 if LR visited relatives or friends in Canada or visited Canada as a tourist before landing, 0 otherwise
  • Worked in Canada before landing: 1 if LR worked in Canada before landing, 0 otherwise
  • Studied in Canada before landing: 1 if LR studied in Canada before landing, 0 otherwise
  • Number of current jobs: Total number of current jobs
  • Hours worked per week: Hours currently worked per week
  • Weeks in employment: Number of weeks at work since landing
  • Skill level: Skill level of current main job: 1=O or A (i.e. management level is treated as skill level A), 2=B, 3=C, and 4=D.
Occupation group
  • Management: 1 if the current main job is in the Management Occupations, 0 otherwise
  • Business and Finance: 1 if the current main job is in the Business, Finance and Administrative Occupations
  • Natural and Applied Sciences: 1 if the current main job is in the Natural and Applied Sciences and Related Occupations, 0 otherwise
  • Health: 1 if the current main job is in the Health Occupations, 0 otherwise
  • Social Science: 1 if the current main job is in the Occupations in Social Science, Education, Government Service and Religion, 0 otherwise
  • Art, Culture and Recreation: 1 if the current main job is in the Occupations in Art, Culture, Recreation and Sport, 0 otherwise
  • Sales and Services: 1 if the current main job is in the Sales and Service Occupations, 0 otherwise
  • Trades, Transport and Equipment Operators: 1 if the current main job is in the Trades, Transport and Equipment Operators and Related Occupations, 0 otherwise
  • Primary Industry: 1 if the current main job is in the Occupations Unique to Primary Industry, 0 otherwise
  • Processing Manufacturing and Utilities: 1 if the current main job is in the Occupations Unique to Processing Manufacturing and Utilities, 0 otherwise
Social capital
_Channels through which current main job was found 
  • Job found through family ties: 1 if the current main job was found through family members or relatives, 0 otherwise.
  • Job found through co ethnic friends: 1 if the current main job was found through friends in the same ethnic group as the LR, 0 otherwise.
  • Job found through non-co ethnic friends: 1 if the current main job was found through friends in the ethnic group different than the LR, 0 otherwise.
_Relatives
  • Number of relatives in Canada: Number of types of relatives (spouse, children, parents, grandparents, brothers or sisters, etc.) in Canada, ranging from 0 to 11.
  • Relatives living nearby upon landing: 1 if most of the existing relatives upon landing were living in the same city or same province as LR, 0 otherwise.
  • Relatives living far upon landing: 1 if most of the existing relatives upon landing were living in a place other than the city or province in which LR lived, 0 otherwise.
  • Frequency of contact with family sponsors: Frequency of contact with family sponsor (0~1) :
    • 0--- No sponsor or having not seen or talked to sponsors since arriving;
    • Between 0 and 1 --- Seeing or talking to sponsors in varied frequencies; the higher the index is, the more frequently LR contacts with sponsors.
    • 1--- Seeing or talking to sponsors every day.
 _Friends
  • Friends living nearby upon landing: 1 if most of the existing friends upon landing were living in the same city or same province as LR, 0 otherwise.
  • Friends living far upon landing: 1 if most of the existing friends upon landing were living in a place other than the city or province in which LR lived, 0 otherwise.
  • Number of sources meeting friends: Number of sources meeting new friends, ranging from 0 to 14.
  • Ethnic diversity of friends: Ethnical diversity of friend network (0~1):
    • 0--- No friends or all friends belong to the same ethnic or cultural groups as LR;
    • Between 0 and 1 --- Some friends belong to the same ethnic or cultural groups as LR; the higher the index is, the more ethnically diversified is the friend network.
    • 1--- None of the friends belong to the same ethnic or cultural groups as LR.
  • Frequency of contact with friends: Frequency of contact with friends (0~1) :
    • 0--- No friends or having not seen or talked to friends since arriving;
    • Between 0 and 1 --- Seeing or talking to friends in varied frequencies; the higher the index is, the more frequently LR contacts with friends.
    • 1--- Seeing or talking to friends every day.
  • Ethnic diversity of workplace network: Ethnic diversity of workplace network (0~1):
    • 0--- All the people with whom LR worked belong to the same ethnic or cultural groups as LR;
    • Between 0 and 1 --- Some people with whom LR worked belong to the same ethnic or cultural groups as LR; the higher the index is, the more ethnically diversified is the friend network.
    • 1--- None of the people with whom LR worked belong to the same ethnic or cultural groups as LR.
_Group and organizational network
  • Participation in organization: 1 if LR participated in any organization or group, 0 otherwise.
Time effect
  • Wave 2: 1 if the observation is in Wave 2 and 0 otherwise.
  • Wave 3: 1 if the observation is in Wave 3 and 0 otherwise.
Instrumental variable
  • Ethnic concentration ratio: The ethnic group concentration ratio in the CMA/CA where LR lived, derived from 2001 Census.

Table A.2. Survey means of variables in the estimations

  Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Real weekly wage 705.442 6.803 485.029 5.993
Log of weekly wage 6.352 0.009 5.963 0.011

Immigration category Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Family 0.204 0.005 0.290 0.007
Skilled Workers (PA) 0.593 0.007 0.239 0.007
Skilled Workers (S&D) 0.107 0.004 0.390 0.008
Refugees 0.050 0.002 0.041 0.003
Others 0.045 0.003 0.039 0.003

Demographic variables Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Age 36.078 0.126 34.388 0.149
Age2 13.899 0.100 12.680 0.114
Married 0.788 0.006 0.787 0.007

Province and CMA of residence Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Atlantic Provinces 0.008 0.001 0.006 0.001
Quebec 0.130 0.005 0.119 0.005
Ontario 0.576 0.007 0.580 0.008
Manitoba and Saskatchewan  0.033 0.002 0.028 0.003
Alberta 0.107 0.004 0.102 0.004
BC 0.145 0.005 0.166 0.006
Toronto 0.459 0.007 0.471 0.008
Montreal 0.126 0.004 0.147 0.005
Vancouver 0.114 0.004 0.100 0.005
Ottawa-Hull 0.062 0.003 0.061 0.003
Calgary 0.032 0.002 0.030 0.003
Not in the Big 5 CMAs 0.208 0.005 0.192 0.006

Region of birth Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Asia and Pacific 0.603 0.007 0.618 0.008
North America, UK and Western Europe 0.057 0.003 0.061 0.004
Central and South America 0.063 0.003 0.072 0.004
Europe except UK and Western Europe 0.114 0.004 0.125 0.005
Africa and Middle-East 0.162 0.005 0.124 0.005

Ethnic group Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
White 0.213 0.005 0.220 0.006
Chinese 0.176 0.005 0.215 0.007
South Asian 0.302 0.006 0.253 0.007
Black 0.055 0.003 0.047 0.003
Filipino 0.103 0.004 0.115 0.005
Latin 0.024 0.002 0.034 0.003
West Asian and Arab 0.085 0.004 0.066 0.004
Other Asian 0.030 0.002 0.034 0.003
Other Visible Minority 0.012 0.001 0.016 0.002

Education Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
High school diploma or less 0.186 0.005 0.225 0.006
Some post-secondary education 0.063 0.003 0.051 0.003
College diploma or some university 0.114 0.004 0.173 0.006
Bachelor's degree 0.404 0.007 0.381 0.008
Master's degree or above 0.233 0.006 0.171 0.006
Currently in school 0.104 0.004 0.106 0.005

Language ability Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
English 0.916 0.004 0.862 0.005
French 0.147 0.005 0.143 0.006

Experience Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Had work experience before landing 0.898 0.004 0.781 0.007
Number of weeks in Canada after landing 138.501 1.220 146.614 1.442
Number of weeks in Canada after landing2 272.339 3.521 295.574 4.198
Had an arranged job upon landing 0.111 0.004 0.054 0.004
Visited Canada before landing 0.156 0.005 0.162 0.006
Worked in Canada before landing 0.050 0.003 0.026 0.002
Studied in Canada before landing 0.043 0.003 0.043 0.003

Job characteristics Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Number of current jobs 1.064 0.003 1.080 0.005
Hours worked per week 41.046 0.162 36.003 0.234
Weeks in employment 100.573 0.966 92.404 1.089
Skill level 2.371 0.014 2.674 0.017

Occupation group Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Management 0.042 0.003 0.022 0.002
Business and Finance 0.104 0.004 0.208 0.007
Natural and Applied Sciences 0.220 0.006 0.088 0.005
Health 0.018 0.002 0.073 0.004
Social Science 0.052 0.003 0.068 0.004
Art, Culture and Recreation 0.007 0.001 0.013 0.002
Sales and Services 0.208 0.005 0.332 0.007
Trades, Transport and Equipment Operators 0.125 0.004 0.021 0.002
Primary Industry 0.015 0.001 0.019 0.002
Processing Manufacturing and Utilities 0.209 0.006 0.158 0.006

Channels through which current main job was found Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Job found through family ties 0.064 0.003 0.083 0.004
Job found through co ethnic friends 0.165 0.005 0.171 0.006
Job found through non-co ethnic friends 0.033 0.002 0.035 0.003

Social capital indicators Males Females
Weighted Mean Standard Error Weighted Mean Standard Error
Number of relatives in Canada 0.800 0.013 0.881 0.015
Relatives living nearby upon landing 0.487 0.007 0.549 0.008
Relatives living far upon landing 0.036 0.003 0.033 0.003
Frequency of contact with family sponsors 0.218 0.005 0.294 0.007
Number of sources meeting friends 2.772 0.022 2.727 0.027
Friends living nearby upon landing 0.512 0.007 0.483 0.008
Friends living far upon landing 0.112 0.004 0.091 0.005
Ethnic diversity of friends 0.495 0.004 0.494 0.005
Frequency of contact with friends 0.791 0.003 0.792 0.003
Ethnic diversity of workplace network 0.790 0.003 0.770 0.004
Participation in organization 0.298 0.006 0.286 0.007

  Males Females
Number of individuals 3014 2399
Number of observations 6235 4448

Data source: Longitudinal Survey of Immigrants to Canada (2005).

Table A.3. Estimated effects of non-social capital and social capital variables on the log of real weekly wages

Immigration category Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Skilled Workers (PA) 0.100***   -0.204 0.063* 0.095***   -0.100 0.046
Skilled Workers (S&D) 0.020   -.324** -0.005 0.010   -0.334 -0.042
Refugees -.084**   -.534*** -.084** -0.048   -0.342 -0.061
Others -0.057   -.310*** -0.050 -0.061   -0.215 -0.063

Demographic variables Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Age 0.041*** 0.069*** .082*** 0.041*** 0.037*** -0.030 0.020 0.043***
Age2 -.051*** -.087*** -.102*** -.050*** -.052*** -0.023 -.033** -.060***
Married 0.027 0.011 -0.001 0.017 0.013 -0.017 -0.009 0.005

Province and CMA of residence Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Atlantic Provinces -.137* -0.166 -.230** -.142* -.201** -.542*** -.533*** -.238**
Quebec -.316*** -1.245*** -.593*** -.274*** -.113** -.296* -.281** -.137*
Manitoba and Saskatchewan  -.167*** -0.108 -.173** -.173*** -0.080 -.975*** -.701*** -.117*
Alberta -0.027 0.061 -0.076 -0.044 -0.053 -.340** -.262*** -0.057
BC -0.061 -0.205 -.142* -0.019 -0.039 -0.030 -0.043 -0.016
Toronto 0.008 0.019 0.020 -0.001 0.009 0.034 0.019 0.018
Montreal 0.061 0.021 0.061 0.034 0.020 0.002 0.002 0.050
Vancouver 0.184*** 0.788*** 0.419*** 0.138** 0.067 0.311** 0.256*** 0.082
Ottawa-Hull 0.046 -0.129 -0.049 0.065* 0.092** 0.445*** 0.331*** 0.082*
Calgary -0.035 -0.039 0.021 -0.041 0.032 -0.189 -.176* 0.036

Region of birth Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Asia and Pacific -.178***   -0.113 -.191*** 0.006   -0.057 -0.017
Central and South America -.122**   -0.177 -.144** -0.034   -0.186 -0.041
Europe except UK and Western Europe -.239***   -0.061 -.263*** -0.060   -0.066 -.120**
Africa and Middle-East -.113**   -0.094 -.136** -0.003   -0.039 -0.050

Ethnic group Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Chinese -.181***   -.161* -.189*** -.092*   0.009 -0.051
South Asian -.071*   0.124 -.084* -0.070   0.122 -0.091
Black -.076*   0.062 -.109** 0.001   0.244 -0.103
Filipino -.107**   0.140 -.139*** -0.037   0.151 -0.089
Latin -0.104   0.096 -.127** -0.010   0.142 -0.081
West Asian and Arab -.170***   -0.065 -.160*** -.117**   -0.055 -.123**
Other Asian -.154***   -.197* -.158*** -.203***   -0.259 -.195***
Other Visible Minority -.266***   -0.023 -.276*** 0.013   0.250 -0.003

Education Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
High school diploma or less -.085*** 0.189 0.116 -.075*** -.088*** 0.093 0.026 -0.041
Some post-secondary education -0.046 -0.006 -0.035 -0.037 -0.054 -0.031 -0.067 -0.039
College diploma or some university -.071*** 0.070 0.030 -.056** -.063*** -0.042 -0.060 -0.039
Master's degree or above 0.016 -0.061 -0.076 0.008 0.031 -0.091 -0.091 0.015
Currently in school -.088*** -.067*** -.069*** -.089*** -.075*** -.043* -.047*** -.064***

Language ability Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
English 0.027 0.063** 0.055** 0.005 -0.011 -0.014 -0.018 -0.028
French -0.023 -0.024 -0.006 -0.037 0.005 -0.003 -0.003 -0.001

Experience Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Had work experience before landing 0.052*   0.077 0.040 0.070***   0.255** 0.061**
Number of weeks in Canada after landing 0.000 0.002*** 0.002*** 0.000 0.000 0.002*** 0.001** 0.000
Number of weeks in Canada after landing2 0.000 -.000*** -.000*** 0.000 0.000 -.000** -.000* 0.000
Had an arranged job upon landing 0.167***   0.139** 0.172*** 0.148***   0.230 0.119**
Visited Canada before landing 0.105***   0.218*** 0.110*** 0.072***   0.171 0.066**
Worked in Canada before landing 0.195***   0.178** 0.189*** -0.013   0.078 0.028
Studied in Canada before landing -0.002   -0.108 -0.003 0.023   -0.029 0.020

Job characteristics Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Number of current jobs -.130*** -.063** -.064*** -.141*** -.046** 0.025 0.027 -0.037
Hours worked per week 0.022*** 0.019*** 0.019*** 0.022*** 0.028*** 0.023*** 0.023*** 0.028***
Weeks in employment 0.001*** -0.001 0.000 0.001*** 0.001*** 0.001* 0.001*** 0.001***
Skill level -.115*** -.088*** -.090*** -.122*** -.091*** -.084*** -.086*** -.087***

Occupation group Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Business and Finance -0.047 0.019 0.019 -.068* 0.109** 0.050 0.059 0.094*
Natural and Applied Sciences 0.197*** 0.181*** 0.216*** 0.160*** 0.352*** 0.201*** 0.212*** 0.328***
Health 0.177*** 0.391*** 0.310*** 0.112* 0.257*** 0.242*** 0.257*** 0.251***
Social Science -.122*** -0.025 -0.047 -.161*** 0.024 0.037 0.037 0.038
Art, Culture and Recreation -.151** 0.093 0.019 -.200*** -.162** -.713*** -.656*** -0.096
Sales and Services -.205*** -.142*** -.147*** -.216*** -.112** -0.097 -.092* -0.090
Trades, Transport and Equipment Operators -0.046 -0.002 0.005 -0.053 -.155** -0.095 -0.088 -0.133
Primary Industry -.091* 0.035 0.007 -.123** -0.009 0.033 0.027 0.020
Processing Manufacturing and Utilities 0.037 0.117** 0.114*** 0.010 0.021 0.080 0.088* 0.011

Channels through which current main job was found Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Job found through family ties -0.007 0.030 0.029 -0.068 0.045** 0.069** 0.071*** 0.151
Job found through co ethnic friends -0.018 0.010 0.009 -.219* -0.017 0.005 0.004 -0.153
Job found through non-co ethnic friends 0.005 0.037 0.040 -0.194 -0.040 -0.012 -0.015 -.638**

Social capital indicators Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
Number of relatives in Canada -0.004 -.097** -.103*** -0.006 0.000 -.115* -.119*** -0.013
Relatives living nearby upon landing -0.017   -.520* -0.007 -0.004   -0.444 0.017
Relatives living far upon landing 0.055   1.515* 0.044 0.038   1.642 0.051
Frequency of contact with family sponsors 0.040* 0.051 0.056** 0.026 0.020 0.033 0.031 0.010
Number of sources meeting friends 0.003 0.003 0.003 0.010 -.011** -.010* -.010*** -0.008
Friends living nearby upon landing -0.008   -0.114 -0.007 0.028   0.046 0.024
Friends living far upon landing 0.050**   0.243 0.041 0.038   -1.359 0.036
Ethnic diversity of friends 0.021 0.028 0.025 -.327* 0.012 0.034 0.029 -.373*
Frequency of contact with friends 0.003 -0.021 -0.022 0.122* 0.013 0.031 0.034 0.175**
Ethnic diversity of workplace network 0.180*** 0.130*** 0.138*** 0.600** 0.186*** 0.142*** 0.146*** 0.957***
Participation in organization 0.007 0.023* 0.023* 0.084 0.017 0.003 0.003 0.210

  Males Females
Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS) Random effects Fixed effects Hausman-Taylor Panel IV (EC2SLS)
_cons 4.926*** 4.270*** 4.377*** 4.820*** 4.356*** 6.359*** 5.148*** 3.753***
No. of observations 6235 6235 6235 6235 4448 4448 4448 4448
No. of individuals 3014 3014 3014 3014 2399 2399 2399 2399
chi2 9088.070 5505.687 5863.969 5872.993 7446.827 4711.482 5370.115 5369.095
r2 0.510       0.543      
rho 0.527 0.764 0.858 0.397 0.427 0.830 0.979 0.378

* p<0.1; ** p<0.05; *** p<0.01.

Note: The Hausman-Taylor estimates assume the endogeneity of social capital variables, education, skill level, job tenure and working hours with unobserved heterogeneity.

Data source: Longitudinal survey of immigrants to Canada (2005).

Table A.4. Estimates of interaction effects of social capital on the log of real weekly wages

TVexogenous* Male Female
Coefficient Standard Error Coefficient Standard Error
Demographic variables
Age 0.079*** 0.010 0.017 0.012
Age2 -0.098*** 0.012 -0.029* 0.015
Married 0.000 0.021 -0.004 0.025
Province and CMA of residence
Atlantic Provinces -0.213** 0.104 -0.511*** 0.118
Quebec -0.73*** 0.113 -0.255** 0.110
Manitoba and Saskatchewan  -0.164** 0.081 -0.685*** 0.131
Alberta -0.037 0.071 -0.25*** 0.091
BC -0.17** 0.084 -0.041 0.101
Toronto 0.02 0.042 0.027 0.051
Montreal 0.063 0.071 -0.001 0.081
Vancouver 0.524*** 0.115 0.257*** 0.094
Ottawa-Hull -0.074 0.057 0.333*** 0.098
Calgary 0.002 0.067 -0.158* 0.094
Education
Currently in school -0.067*** 0.015 -0.042** 0.018
Language ability
English 0.061*** 0.023 0.001 0.025
French -0.014 0.030 0.003 0.036
Experience
Number of weeks in Canada after landing 0.002*** 0.000 0.001*** 0.000
Number of weeks in Canada after landing2 0.000*** 0.000 0.000** 0.000
Number of current jobs -0.068*** 0.020 0.028 0.021
Occupation group
Business and Finance 0.014 0.038 0.064 0.047
Natural and Applied Sciences 0.195*** 0.033 0.21*** 0.053
Health 0.331*** 0.068 0.254*** 0.056
Social Science -0.047 0.046 0.033 0.056
Art, Culture and Recreation 0.036 0.071 -0.644*** 0.087
Sales and Services -0.149*** 0.038 -0.084* 0.050
Trades, Transport and Equipment Operators 0.004 0.037 -0.072 0.070
Primary Industry 0.032 0.068 0.05 0.079
Processing Manufacturing and Utilities 0.115*** 0.039 0.101* 0.053

TVendogenous * Male Female
Coefficient Standard Error Coefficient Standard Error
Education
High school diploma or less 0.191* 0.113 0.309*** 0.100
Some post-secondary education -0.209* 0.106 0.311** 0.131
College diploma or some university -0.07 0.089 0.036 0.100
Master's degree or above -0.078 0.053 0.182* 0.096
Job characteristics
Hours worked per week 0.019*** 0.000 0.023*** 0.001
Weeks in employment 0.000 0.000 0.001*** 0.000
Skill level -0.09*** 0.010 -0.091*** 0.011
Channels through which current main job was found 
Job found through family ties -0.132*** 0.038 0.196*** 0.038
Job found through co ethnic friends 0.018 0.014 0.002 0.016
Job found through non-co ethnic friends 0.039 0.024 0.032 0.032
Social capital indicators
Number of relatives in Canada -0.425*** 0.127 -0.121*** 0.043
Frequency of contact with family sponsors 0.05* 0.026 0.025 0.030
Number of sources meeting friends 0.003 0.003 -0.01** 0.004
Ethnic diversity of friends 0.026 0.020 0.024 0.023
Frequency of contact with friends -0.012 0.024 0.043 0.027
Ethnic diversity of workplace network 0.126*** 0.029 0.336*** 0.052
Participation in organization 0.023** 0.011 -0.001 0.013
Interaction effects
High school diploma or less * Kinship size 0.022 0.076    
Some post-secondary education * Kinship size 0.209*** 0.080    
College diploma or some university * Kinship size 0.141* 0.080    
Master's degree or above * Kinship size 0.008 0.054    
Skilled Workers (PA) * Kinship size 0.217** 0.091    
Skilled Workers (S&D) * Kinship size 0.469 0.294    
Refugees * Kinship size -0.065 0.211    
Others * Kinship size 0.333 0.222    
Chinese * Kinship size 0.331*** 0.127    
South Asian * Kinship size 0.093 0.100    
Black * Kinship size 0.362* 0.187    
Filipino * Kinship size 0.219* 0.130    
Latin * Kinship size 0.038 0.190    
West Asian and Arab * Kinship size 0.505** 0.251    
Other Asian * Kinship size 1.012 2.167    
Other Visible Minority * Kinship size -0.413 2.133    
High school diploma or less * Job found through family ties 0.211*** 0.046    
Some post-secondary education * Job found through family ties 0.185*** 0.062    
College diploma or some university * Job found through family ties 0.13** 0.064    
Master's degree or above * Job found through family ties 0.161* 0.083    
English * Job found through family ties     -0.162*** 0.043
French * Job found through family ties 0.25*** 0.091    
French * Job found through co-ethnic friends -0.097** 0.041    
French * Job found through non-co ethnic friends     -0.206*** 0.068
High school diploma or less * Workplace diversity     -0.355*** 0.081
Some post-secondary education * Workplace diversity     -0.46*** 0.122
College diploma or some university * Workplace diversity     -0.099 0.088
Master's degree or above * Workplace diversity     -0.343*** 0.094

TIexogenous * Male Female
Coefficient Standard Error Coefficient Standard Error
Immigration category
Skilled Workers (PA) -0.591*** 0.220 -0.093 0.310
Skilled Workers (S&D) -0.882*** 0.297 -0.325 0.329
Refugees -0.737*** 0.227 -0.344 0.260
Others -0.787*** 0.273 -0.209 0.246
Region of birth
Asia and Pacific -0.077 0.132 -0.053 0.305
Central and South America -0.259 0.203 -0.176 0.367
Europe except UK and Western Europe -0.086 0.109 -0.055 0.239
Africa and Middle-East -0.101 0.122 -0.036 0.294
Ethnic group
Chinese -0.398*** 0.141 0.022 0.249
South Asian 0.091 0.168 0.134 0.267
Black -0.179 0.170 0.257 0.234
Filipino -0.082 0.259 0.185 0.299
Latin 0.1 0.245 0.14 0.309
West Asian and Arab -0.376* 0.195 -0.044 0.220
Other Asian -0.748 1.140 -0.241 0.277
Other Visible Minority 0.424 2.138 0.27 0.372
Experience
Had work experience before landing 0.077 0.078 0.268** 0.112
Had an arranged job upon landing 0.112 0.084 0.236 0.189
Visited Canada before landing 0.204** 0.081 0.179 0.161
Worked in Canada before landing 0.163 0.115 0.073 0.221
Studied in Canada before landing -0.102 0.124 -0.015 0.203

TIendogenous * Male Female
Coefficient Standard Error Coefficient Standard Error
Relatives living nearby upon landing -0.785** 0.364 -0.489 0.683
Relatives living far upon landing 0.784 0.994 1.439 1.921
Friends living nearby upon landing -0.033 0.371 -0.004 0.649
Friends living far upon landing 0.62 0.649 -1.456 1.222

  Male Female
Coefficient Standard Error Coefficient Standard Error
_cons 4.926*** 0.388 5.05*** 0.507
No. of observations 6235   4448  
No. of individuals 3014   2399  
rho 0.927   0.978  

* p<0.1; ** p<0.05; *** p<0.01.

Note: The interaction effects are estimated with Hausman-Taylor estimator assuming the endogeneity of social capital variables, education, skill level, job tenure and working hours with unobserved heterogeneity.

* TV: Time-varying variables. TI: Time-invariant variables.

Data source: Longitudinal Survey of Immigrants to Canada (2005).

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