Visible Minorities and Job Mobility: Evidence from a Workplace Panel Survey

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Visible Minorities and Job Mobility: Evidence from a Workplace Panel Survey Mohsen Javdani 1 Received: 18 September 2018 / Accepted: 31 July 2020 /Published online: 17 September 2020 # Springer Science+Business Media, LLC, part of Springer Nature 2020

Abstract

We use Canadian linked employer-employee data to examine whether visible minority Canadian-borns experience any differences in their inter-firm and intra-firm job mobility, as well as wage returns associated with them, compared to white Canadian-borns. Our results suggest that both male and female visible minority Canadian-borns experience substantial differences in probability of promotion, number of times promoted, and wage returns to promotions, compared to their white peers. For male visible minorities, these differences with their white peers mainly operate within firms. For female visible minorities however, almost half of the gap is driven by their crowding into firms with fewer promotion opportunities. In terms of inter-firm mobility, while male visible minorities are similarly likely to move between firms compared to their white peers, female visible minorities are less likely to change employer. Both groups however receive similar wage returns to their inter-firm mobility compared to their white peers. This seems to suggest that lower chances for upward mobility within firms do not translate into more inter-firm mobility or higher returns to inter-firm mobility for visible minorities. We find no evidence that these differences in intra-firm mobility could be driven by differences in hierarchical level, career path, or immigration background. Labour market discrimination however remains a potential contributor to these differences, which is also consistent with some of our findings. Our results also suggest that for female visible minorities, different family responsibilities driven potentially by different cultural norms or family dynamics could also contribute to these differences. Keywords Promotions . Inter-firm mobility . Job mobility . Visible minority . Ethnic minority . Discrimination JEL Codes J15 . J62 . J71 . M51 Electronic supplementary material The online version of this article (https://doi.org/10.1007/s10888-02009460-9) contains supplementary material, which is available to authorized users.

* Mohsen Javdani [email protected]

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School of Public Policy, Simon Fraser University, 515 West Hastings Street, Vancouver, BC V6B 5K3, Canada

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M. Javdani

1 Introduction We use Canadian linked employer-employee data to examine whether visible minority (or non-white) Canadian-borns experience any differences in their job mobility relative to white Canadian-borns.1 More specifically, we estimate differences in probability of inter-firm mobility, probability of intra-firm mobility (i.e. promotion), the number of times promoted, as well as wage returns associated with inter-firm and intra-firm mobility, between visible minority and white Canadian-borns. To the best of our knowledge, we are the first study to examine whether native-born workers