Immigrant children earn more than their Canadian-born peers

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Immigrant children

Immigrant children earn more than their Canadian-born peers according to the Economic Outcomes of Tax-filing Immigrants Admitted as Children Compared to Canadian Taxpayers by Age at Taxation in 2020 report, immigrants who have entered Canada as young children experience more significant monetary benefits than their native counterparts when reaching 30 years old. 


Evidence suggests that the gap in income between immigrants and other Canadians is primarily due to their higher education attainment. Immigrant families are more likely to prioritize academic success for their children, resulting in greater numbers of graduates holding advanced degrees. This increased educational attainment leads to higher wages and better job opportunities for the immigrant population.


Education potential of Immigrant Children

The difference in income between immigrants and other Canadians can be attributed to their higher level of education. Families of immigrants motivate their children to continue their education and earn advanced degrees more frequently.


At every age, significantly more immigrant taxpayers reported post-secondary tuition fees than did the average Canadian.

By the time they hit 30+ years of age – at which point most university students are in post-graduate programs – more than a third of immigrant taxpayers, 33.7 percent, reported post-secondary tuition fees on their income tax reports compared to barely over a quarter, 27.2 percent, of all Canadians.


Immigrant children earning potential 

The survey also indicates that immigrant children have a higher earning potential than their Canadian-born counterparts since more immigrant children are completing post-secondary education.

The median income for 25-year-olds in Canada as a whole was $29,710, whereas the median income for 25-year-olds who moved to Canada as children were $30,300. By the age of 30, the pay gap between immigrants and the general population had grown to almost 13%, with persons who had immigrated as children receiving a median income of $47,400 compared to the general population’s $41,810 income.


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