Ethnoracial Origins, Social Capital, and Earnings

Abstract

The purpose of this article is to analyse ethnoracial differences in income attainment, as well as differences in earnings that can be attributed to social capital. The data set is the Ethnic Diversity Survey, a large survey of Canadians conducted by Statistics Canada in 2002. Bivariate and multivariate analyses show that ethnoracial minorities are disadvantaged when compared with the British or whites in general. This disparity remains even after controlling for a host of theoretically relevant variables. The brunt of this disadvantage is experienced by male visible-minority immigrants. Although social capital is shown to exert an independent effect on earnings, its benefit varies by social origins, types of social capital, birth, and gender. Trust is important for females’ earnings but not for males’. Family contact and religious participation benefits British males’ earnings more than those of visible-minority males. Religious participation also benefits those born in Canada more than those who immigrated to Canada. In contrast, female immigrants benefit from their associational participation more than females born in Canada.