How much should immigrants speak English in Canada? Earnings of immigrants depending on English proficiency

This paper investigates immigrant assimilation in Canada; specifically the impact English language proficiency has on wage differentials between adult male immigrants and native workers. Using 1991, 1996 and 2001 Canada Census reports, the analysis employs separate cross-sectional regression, as well as quasi-panel regression. Findings are consistent with the hypothesis that greater English proficiency enhances earnings in the Canadian labour market. It further supports that immigrants at different English skill levels experience varied economic assimilation into the labour market. Most immigrants face wage disparities due to limited access to jobs. Such limited access to Canadian employment can be attributed to primarily poor English skills, as well as immigration status. Finally, English language proficiency and return to post-migration experience, or education appear to be substitutes, that is, those with greater proficiency in English have a smaller effect of time spent in Canada on earnings, but not for those without any English knowledge.