Chinese Canadians have a higher rate of investment income than the general population, and more immigrants have investment income than have non-immigrants, new census figures reveal.
The findings, released quietly by Statistics Canada last month, underscore that most immigrants do well over time in Canada, and that Chinese Canadians do exceptionally well.
Canada's South Asian and Chinese populations are similar in size and have similar total earnings, but Chinese have 2.5 times more in investment income.
"The nature of Canada's mosaic has shifted, and now the Chinese community is moving to the top of the triangle, by virtue of their investment income and mobility amongst the second generation," said Jack Jedwab, executive director of the Association for Canadian Studies. "As well, disproportionately more Chinese came to Canada with funds during the past couple of decades."
The new figures also show that Canadians from the Caribbean, Latin America, Africa and the Philippines persistently lag behind both the national average and other visible minority groups in investment income. They may experience less economic mobility over time because less wealth is passing from generation to generation.
"If you don't have a lot of investment income, you don't have a lot to transmit," Mr. Jedwab said.
Mr. Jedwab was expected to publish a brief study yesterday based on the 2006 census data. It shows that nearly half (46.6 per cent) of the 945,390 Chinese Canadians over the age of 15 have investment income, compared with the national average of one in three.
Other visible minority groups fall below the national average: 30.3 per cent of South Asians have investment income, 29.5 per cent of Koreans, 21.5 per cent of Filipinos and 18.6 per cent of blacks.
Chinese Canadians are also enthusiastic investors. On average, 4.3 per cent of the total income of all Canadians is investment income - defined as interests from bonds, deposits in banks and trust companies, dividends from stocks and mutual funds, and rents from real estate. However, 6 per cent of the total earnings of Chinese Canadians ($26-billion) is investment income, while for South Asians it is 2.7 per cent.
For blacks and Latin Americans in Canada, investment income comprises just 1.1 per cent of their total income, and for Filipino Canadians, it is 0.9 per cent. Some groups, including Filipinos, have less investment income because they are sending money to relatives back home.
About 38 per cent of all immigrants have investment income, compared with 32 per cent of non-immigrants. Age, income and education are important variables as well, with investment income increasing over time. The census data predate this fall's global recession.
Dalton Conley, a New York University sociologist, has published work showing the significance of inheritance transmission in explaining the gaps in wealth between the black and white populations in the United States.
"Immigrants are often very conscientious when it comes to saving," Prof. Conley said. "But there are significant differences amongst visible minority groups."
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Putting money into Canada
Chinese immigrants lead the way among visible minorities in having investment income.
Percentage of Canadians who have investment income
Total population: 24.4 million
Total population: 66.6%
Number of people with investment income: 33.4%
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Total visible minority population: 3.6 million
Total population: 69.7%
Number of people with investment income: 30.3%
KATHRYN TAM/THE GLOBE AND MAIL
SOURCE: STATISTICS CANADA