Immigrant women are enabling a reduced human capital gender gap, according to a recent study.
A recent analysis from Statistics Canada shows how women contributed to the nation’s overall level of human capital during a 50-year period, from 1970 to 2020.
Human capital depicts an individual’s knowledge and abilities that come from education, training, and experience, quantified as the current worth of future wages. This is according to the research “Accumulation of Human Capital in Canada, 1970 to 2020.” According to this, the most significant element of overall wealth is human capital.
Additionally, a person’s existing income and expected future income are two examples of their human capital. The census, labor force surveys, mortality rates, and statistics from these sources are all used by the government to determine this.
A person’s degree of human capital would increase with their new predicted earnings. However, it depends on whether they made a major financial investment in their schooling or acquired work experience that significantly benefited their career.
Immigrant women are enabling reduced human capital gender gap
The average human capital of both male and female Canadian immigrants was found to be lower than that of Canadian-born people.
However, the study demonstrates that immigrants have significantly increased their contributions to Canada’s average growth in human capital. This is mostly attributable to Canada’s rising immigrant population. Canada received 147,700 immigrants in 1970. This number increased to 341,000 by the end of 2019. Further, it is anticipated that by the end of 2025, Canada will reach its goal of accepting 500,000 new permanent citizens annually.
Both immigrant men and women have grown their human capital over time. The expansion in human capital in Canada after 1995 was largely driven by immigrants. This implies around 40% of the total increase. 56% of that growth, according to the report, was attributed to immigrant men, and 44% to immigrant women. Prior to 1995, immigrants contributed around 18% of Canada’s overall growth in human capital.
Moreover, between 1995 and 2020, the proportion of immigrants in the working-age population increased from 19 to 25 percent. While the average human capital increased more quickly than that of Canadian-born people (0.88% year vs. 0.62% annually).
Nearly a quarter of all Canadians are now immigrants. Also, they contributed to nearly 100% of the country’s labor force expansion and 75% of its economic expansion.
Immigrant women and Canadian-born women
Women now account for 41% of the world’s human capital, up from 30% in 1970.
Due to the significant rise in the number of women entering the Canadian labor force up until 1995, that share increased significantly more quickly. The proportion of women in human capital increased from 30% to 39% between 1970 and 1995. Similarly, the percentage increased slightly from 39% to 41% between 1995 and 2020.
The gender gap (the difference between women’s and men’s human capital) has narrowed over time. But it was discovered that it still exists between women who immigrated to Canada and women who were born there. In 1970, Canadian-born women had 36% as much human capital as Canadian-born males. Meanwhile, immigrant women had around 31% of that of immigrant men.
Both Canadian and immigrant women experienced a comparable rate of gender gap reduction between 1970 and 2020 (66% and 71%, respectively).
According to the survey, there are gender disparities among immigrants across practically all age groups and educational levels. However, it is especially among immigrant women with only a high school diploma or less.
Both Canadian and immigrant women experienced a comparable rate of gender gap reduction between 1970 and 2020 (66% and 71%, respectively).
According to the study, a rise in overall wealth per capita is brought on by more women entering the workforce. The other factors include more women attaining higher education levels, or more women earning more money. This further predicts a high level of future revenue for a country.
According to the study’s findings, measures that boost women’s labor market participation, earnings, and hours worked now are necessary to boost their human capital and income in the future.



