The immigrant wage gap in Canada

Algebraically, using the notation introduced in Section 3, if we let the superscript C denote the subset of Country of birth variables in the vector Y, then the difference between the Country of birth fixed effect component of the wage gap in the private sector and that in the public sector as (Y C C C C C C P − YG )γˆG + YG (γˆP − γˆG ). where the first component represents the difference in comp [...] The major reason though why the wage gap is to the advantage of natives in the private sector while it is to the advantage of immigrants in the public sector is that except for females working in the public sector, the unexplained component of the wage gap is much more to the advantage of natives in the private sector than in the public sector. [...] In fact, for males, the unexplained component of the wage gap is about 60 percent more to the advantage of natives in the private sector than in the public sector and, for females, while it is to the advantage of natives in the private sector, it is to the advantage of immigrants in the public sector. [...] Another factor that explains why the wage gap is to the advantage of natives in the private sector while it is to the advantage of immigrants in the public sector is that foreign schooling and foreign experience are significantly more discounted in the private sector than in the public sector. [...] This reflects the fact that the differences between the estimated constant terms in the regressions are much more in favour of immigrants in the case of females than in the case of males, which suggest that the returns to the human capital variables omitted in the regressions are significantly larger for female immigrants than for male immigrants.