Population aging is prompting concern over the viability of public pension systems in many Organisation for Economic Co-operation and Development (OECD) nations. In Canada, over the past 2 decades, one response has been to significantly increase immigration, increasing the immigrant share of the population. However, policy and academic analyses have largely overlooked the aging of the immigrant population. This study aims to document disparities in low-income rates and labour market outcomes between immigrants and non-immigrants at older ages, focusing on the intersectionality of immigration status, racial identity and gender.
We employ the 2021 Canadian Census to undertake a descriptive analysis of low-income patterns and the underlying income sources.
Compared to non-racialized non-immigrant men, seniors’ low-income rates increase with each of immigrant, racialized and female status – and the effects are cumulative. Low-income differences are linked to variations in prime-age employment and earnings, and access to pension benefits for immigrants. To a large extent, the gaps are driven by variations in Canada Pension Plan (CPP) benefits, mostly due to limited years of Canadian residency.
We characterize differences in low income across eight population subgroups and examine the complete set of tax-relevant income sources to understand how each underlying income stream is associated with the observed differences in low income. We emphasize the intersectionality between immigration status and racial identity, and how both vary by gender.
