The Earnings Gap between Black and White Workers in Canada: Evidence from the 2006 Census

We analyze the Black-White earnings gap among Canadian workers using 2006 census data. The earnings gap is estimated using conventional earnings regressions, Oaxaca-Blinder decompositions and an empirical technique developed by Brown, Moon and Zoloth that allows an occupation attainment model to be incorporated into a standard earnings decomposition specification. Results from this latter method suggest that wage discrimination and occupational segregation account for the majority of the earnings gap, while endowment differences account for a fairly small portion. In light of the estimated impacts of wage discrimination and occupational segregation on full-time, full-year Black workers, we suggest various policy initiatives and further research aimed at reducing these earnings discrepancies.