Effects of ethnic enclosure of neighborhoods, workplace, and industrial sectors on earnings

Abstract

In this study, we extend prior work on how ethnic boundaries in specific contexts affect the earnings of racial and ethnic groups by simultaneously exploring how levels of ethnic enclosure, measured by co-ethnic concentration, of neighborhoods, workplaces, and industrial sectors, and their “moderating” effects on the earnings of six major recent racial and ethnic immigrant groups in the eight largest Canadian cities. The consideration of ethnic boundaries in multiple contexts portrays a more realistic picture of the effect of ethnic boundaries on earnings. The study helps us to understand how ethnic enclosure in various contexts affects the economic attainments of groups with higher proportions of immigrants. The study is based on 2006 Canadian census data. The findings show that most members of the six included racial/ethnic minority groups live and work in environments with high levels of ethnic enclosure. Besides, in general, the earnings of employees are negatively related to co-ethnic concentration in neighborhood and workplace, while the relationship with industrial co-ethnic concentration is not consistent. The earnings of employers are negatively related to co-ethnic concentration in the workplace only. The moderating effects of various co-ethnic contexts on earnings are mostly positive for both employers and employees, although they are more likely to be significant among employees. In addition, the findings show variations among the six groups.