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A Study of Poverty and Working Poverty among Recent Immigrants to Canada

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Abstract

Researchers have shown that new immigrants face more significant barriers to labour market integration than do other working-age Canadians, and that they are at greater risk of experiencing poverty. Some researchers have also demonstrated that the economic difficulties encountered by recent immigrants became more important in the nineties than in previous decades. However, many questions remain with respect to the labour market attachment as well as to the living conditions of immigrants who settle in Canada.

Using the data from the Survey on Labour and Income Dynamics (SLID), this study attempts to gain a better understanding of the phenomenon of poverty and working poverty among the group of immigrants who arrived in Canada since the early nineties (also called in this study "recent immigrants"). More specifically, this study gives some answers to the following questions:

Are the determinants of low family income among recent immigrants the same as those that have been identified for the rest of the population?
Do low-income recent immigrants have characteristics that distinguish them from other low-income Canadians? Are they more likely to be working poor, unemployed poor, or inactive poor persons?
Are they more or less dependent on government transfers?
Are their housing conditions particularly disadvantageous?
Do recent immigrants leave low income more or less quickly than other Canadians?

Among other things, this study demonstrates that the profile of low-income recent immigrants differs in many aspects from that of other low-income Canadians. Notably, recent working-age immigrants living in poverty are less likely to depend on government transfers and are more likely to rely on family support to fulfill their needs. Thus, they are particularly likely to be part of a working poor family as compared with other poor Canadians.

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