Study Analysis on Immigrant Women’s Contribution to Human Capital

In a recent study published by Statistics Canada, the contribution supported by women to human capital proved significant in the period 1970 – 2020. The study mainly educates about gender and immigration role in Canada.

The Role of Immigration and Human Capital in Canada

In economics, human capital is referred to the present value of future wages, which is derived from individual’s skills like education, experience, and training. Moreover, it is considered to be the most significant element of total wealth.

The recent study on gender gap and human capital projects that immigrants in Canada tend to have less human capital than those who are natives in Canada. The study also shows that these immigrants have significantly increased their contribution to Canada’s human capital development. Thus, this is why the human capital of female and male immigrants has risen over the period of time.

In Canada, Immigration plays an important role in the human capital growth rate. It accounted for nearly 40% (Men – 56%; Female – 44%) of all human capital growth after 1995 – a sign of tremendous growth.

Canada has also seen a considerable increase in immigrants in the working-age population during the period from 1995-2020. It grew from 19% to 25% with immigrants’ human capital exceeding the birth rate as because of the country’s location. This is why Canada’s labour force and economic growth are almost entirely driven by immigrants, who now make up nearly a quarter of its total population.

Immigrant Women and Canadian Women: Gender Gap

The gender gap between immigrant women and Canadian women has slowly declined. Women now make up 41% of the world’s human capital. And, since more women started entering the workforce in 1995, the share of women in the Canadian workforce has increased at a faster rate. It increased slightly from 30% to 39% between 1970 and 1995 and from 39% to 41% between 1995 and 2020. Finally, between 1970 and 2020, the gender gap narrowed equally among Canadian women of immigrants (66% and 71%) respectively.

According to the study, there are some gender differences among immigrants in almost all age groups and education levels. Therefore, the country needs to increase the amount of future income generated more by women’s participation. In forward times, there must be more policies to enhance women’s human capital and income.