Minority Earnings Disparity Across the Distribution

Abstract

We use quantile regression methods on 2001 Census of Canada data to assess disparity at four points in the conditional distribution of earnings of native-born ethnic minorities (the 20th, 50th, 80th and 90th percentiles) as well as at the mean. In doing so, we examine and assess the degree to which minorities face earnings differentials at both the top and bottom of the conditional distribution as well as at the mean, thereby testing the degree to which the mean difference is representative of differences across the distribution. We consider glass ceilings for Canadian-born ethnic minorities, and find evidence that some groups, such as Chinese-origin people, do indeed face more earnings disparity at the top of the distribution. However, other groups face different structures. South Asian-origin workers face greater disparity at the bottom than at the top, and Black workers face great disparity across the distribution. We interpret these latter patterns as identifying poor access of minority workers to good jobs in various parts of the distribution, rather than as negating a glass ceiling.