Women immigrants are bridging the human capital gender gap, according to a recent study by Statistics Canada. The study revealed the significant contribution of women to Canada’s total human capital between 1970 and 2020. This makes it fifty years.
The study, known as the “Accumulation of Human Capital in Canada between 1970 and 2020”, analyses the role of gender and immigration. It outlines human capital, with their knowledge and skills based on factors, including experience, training, and education hold the current essence of prospective earnings.
It also states that human capital is the most crucial part of absolute wealth. For instance, an individual with their current earnings might see it as their human capital until they retire.
The calculation process of the government relies on census data, life expectancy, mortality rates, and labor force surveys.
If an individual invests significantly in their education or gains considerable work experience providing some sort of value addition to their career, the human capital value will immediately rise through the anticipated future earnings.
Women immigrants are bridging the human capital gender gap
Immigrants in Canada, men, and women, displayed reduced human capital compared to those born in Canada. Also, according to the study, immigrants significantly contributed to Canada’s human capital growth. This is mainly an outcome of the rise in the number of new immigrants. In 1970, Canada brought forth 147,700 new immigrants. However, in the latter part of 2019, this figure rose to 341,000, and per the latest Immigration Levels Plan, it will further rise to 500,000 PRs by 2025.
Both men and women who immigrate to Canada led to increase their human capital growth gradually. After 1995, immigrants even led to a 40 percent increase in Canada’s human capital growth. Furthermore, the study revealed that the growth occurred through 56 percent of men and 44 percent of women.
Conversely, prior to the year 1995, immigrants were responsible for only 18 percent of total human capital growth in Canada.
The number of newcomers within the working-age population rose from 19 percent to 25 percent between 1995 and 2020. Moreover, immigrants’ average human capital growth increased and surpassed the Canadian-born population. This implies that for immigrants, the percentage was 0.88 percent yearly, while for the Canadian-born population, it was 0.62 percent yearly.
Additionally, immigrants form at least a quarter of the total population in Canada. Besides this, they’re even responsible for 100 percent of labor force growth and 75 percent of the growth in the economy.
Canadian women and immigrants
Women’s total share of human capital increased from 30 percent in 1970 to 41 percent in 2020. The rise in share increased quickly until 1995 due to a rising number of women participating in the Canadian workforce. Additionally, women’s human capital share immensely increased from 30 to 39 percent from 1970 to 1995. Likewise, the percentage increased from 39 percent in 1970 to 41 percent in 1995.
Although the gender gap between men’s and women’s human capital has reduced, the gap strongly persists among women immigrants and Canadian women.
Notably, in 1970, the human capital for women immigrants of immigrant men turned out to be nearly 31 percent. On the other hand, Canadian-born women as Canadian-born men had 36 percent of human capital.
Overall, between 1970 and 2020, the gender gap had immensely reduced at almost the same pace for women immigrants and Canadian-born women. This was 66 percent and 71 percent, respectively, in 2020.
According to the latest study, the immigrant gender gap was prevalent among all age groups and educational qualifications. This was specifically for women immigrants with a higher school of education or lesser.
Moreover, the increased women’s participation in the labor force resulted in an increase in total wealth per capita. The other factors responsible for the rise in total wealth per capita include a high level of educational qualification, an increase in women’s earnings, and increased future level income for Canada.
To conclude, there must be a rise in policies that increase women’s labor force participation, incomes, and worked hours. This way, Canada could witness a rise in human capital and future income of women.
