1. Ather H. Akbari Saint Mary’s University and Azad Haider
Community Networks and Economic Integration of Immigrants in Canada: Some Evidence From Housing Market
Ather H. Akbari
Saint Mary’s University
and
Azad Haider

2. Introduction
Economic integration of immigrants is an important focus of public debate in immigrant receiving countries.
With larger numbers of immigrants now arriving in smaller areas, smaller communities are also taking greater interest in their economic integration.

3. Some definitions
Migrant networks: interpersonal ties linking kin, friends, and community members in their places of origin and destination. (Massey et al (1993).
Economic integration: Minority participation in mainstream socioeconomic institutions (e.g., labour market) on the basis of parity with ethnic-majority individuals of similar socio-economic origins. (Alba and Nee (1997).

4. Importance of the research question
To assess the importance of the role of networks in immigrant settlement programs.
Important study for smaller provinces where strong networks are not yet established.

5. Measures of economic integration
Four key measures of economic integration:
Citizenship
Homeownership
Job status
Earning (better income)

6. Importance of homeownership
Most important investment in one’s lifetime
Provides greater privacy and security
An important signal of commitment to life in Canada
Social externality

7. Search theory in economics
Individuals search for a product or for a job until the benefit from additional search exceeds the cost of it (Stigler)
Role of networks
Help reduce the cost by providing information.
Determine whether and where an immigrant buys a house in the host country (Borjas, 2002; Filpen 2001, Gabriel and Painter 2003, Haan 2005).

8. Some Descriptive Statistics

9. Period of Construction
Table 1: Occupied private dwellings by condition of dwelling and Period of Construction (%)
Visible Minority Group
Major repairs
Period of Construction
Non-Immigrants
Established Immigrants
( )
Black
11.4
9.4
36.5
41.9
South Asian
5.4
5.0
58.3
61.9
Chinese
6.2
5.7
52.7
61.0
South East Asian
8.1
6.8
42.3
49.7
Filipino
7.2
6.5
51.8
46.4
Arab/West Asian
6.3
42.1
47.4
Latin American
13.5
9.8
35.4
37.2
Canada
7.5
39.0

10. Number of Rooms (1-4 rooms) Number of Bedrooms (0-3 bedrooms)
Table 2: Total number of occupied private dwellings by number of rooms and number of bedrooms
Visible Minority Group
Number of Rooms
(1-4 rooms)
Number of Bedrooms
(0-3 bedrooms)
Non-
Immigrants
Established Immigrants
Non-Immigrants
Black
40.3
34.9
86.8
76.1
South Asian
36.5
20.8
75.3
54.5
Chinese
30.7
24.1
75.1
60.8
South East Asian
40.4
28.3
86.3
71.9
Filipino
41.6
31.9
87.5
70.1
Arab/West Asian
33.0
31.7
78.0
72.3
Latin American
44.8
35.0
87.3
79.4
Canada
25.5
77.3

11. Visible Minority Group Owned Rented
Table 3: Total number of occupied private households by tenure
Visible Minority Group
Owned
Rented
Non-
Immigrants
Established Immigrants
Non-Immigrants
Black
39.3
49.2
60.7
50.8
South Asian
61.5
79.3
38.5
20.7
Chinese
71.1
83.5
28.8
16.5
South East Asian
46.2
67.7
53.8
32.3
Filipino
52.2
47.8
Arab/West Asian
59.9
60.8
39.9
39.2
Latin American
42.2
49.6
57.8
50.4
Canada
68.4
31.6

12. Average Household Income
Table 4: Total number of occupied private households by Average Value of Dwelling and by Average Household Income
Visible Minority Group
Average Value of
Dwelling
Average Household Income
Non-
Immigrants
Established Immigrants
Non-Immigrants
Black
247729
272247
49128
58782
South Asian
384298
346214
76110
86960
Chinese
402183
414827
87365
77841
South East Asian
266711
343900
51070
65875
Filipino
273666
283701
66052
80521
Arab/West Asian
287561
347431
64044
66046
Latin American
251940
264553
50614
59728
Canada
263369
69548

13. Chart 1: Home ownership rates among visible minority immigrants in Canada

14. Data and Methodology Regression analysis to estimate a demand model
2006 census based data
Unit of analysis is a visible minority group resident in a Census Metropolitan Area (CMA).
8 visible minority groups resident in 14 different CMAs are considered.
Feasible Generalized Least Square (FGLS)
Pooled Corrected Standard Error (PCSE)

15. Basic Demand Model for Homeownership
HRATE = β0 + β1 PRICE + β2 INCOME + β3 HHSIZE + β4 UR+ β5 (Vismin/POP) + β6 RPOP
PRICE is the average price of a house paid by a community member
INCOME is the average household income in the community
HHSIZE represents household size in the community
UR is the unemployment rate in the community
Vismin/POP is the % composition of Vismin in a CMA population
RPOP is the % composition of recent Vismin immigrants in Vismin population

16. Extended Demand Model for Homeownership
HRATE = β0 + β1 PRICE + β2 INCOME + β3 HHSIZE + β4 UR + β5 (Vismin/POP) + β6 RPOP + β7 (D1*Vismin/Pop)+ β8 (D2* Vismin/POP)
D1 = 1 if the CMA is in Atlantic Canada and zero otherwise
D2 = 1 if the CMA is in the Saskatchewan & Manitoba provinces
and zero otherwise.
The coefficients, β7 and β8 each compares the effect of a Vismin population on homeownership rates in CMAs of Atlantic Canada and CMAs of Saskatchewan & Manitoba provinces, with the CMAs in the rest of Canada.

17. Table 5: Regression Results of Homeownership Model
Variable
Coefficient
t-statistic
P-value
Constant
0.0000
Price($)
-1.32E-05
0.2164
House hold Income ($)
Household Size (HS)
0.8569
Unemployment (Rate)
0.0490
Ratio of Total Vismin CMA Population to Total CMA Population
0.0037
Ratio of Recent Vismin Immigrants to Vismin Immigrants R2
0.52
SE of Reg.
12.557
Adjusted R2
0.49
F-Statistic
No of Obs.
112
Prob. (F-Stat)

18. Table 6: Regression Results of Homeownership Model With Population Effects in Smaller Provinces
Variable
Coefficient
t-statistic
P-value
Constant
0.0000
Price($)
-1.01E-05
0.3773
House hold Income ($)
Household Size (HS)
0.9937
Unemployment (Rate)
0.1272
Ratio of Total Vismin CMA Population to Total CMA Population (TPop )
0.0082
Ratio of Recent Vismin Immigrants to Vismin Immigrants
Dummy variables (Base on provinces other than in Atlantic Canada, Saskatchewan and Manitoba)
(D1) * Population (TPop )
0.1552
(D2) * Population (TPop )
0.6026 R2
0.52
SE of Reg.
Adjusted R2
0.49
F-Statistic
No of Obs.
112
Prob. (F-Stat)

19. Some conclusions and policy implication
Community networks, as represented by their resident population in a CMA, are important determinants of the homeownership rate in a visible minority group.
A 1 percent increase in the composition of visible minorities in a CMA population increases home ownership rate in that group by 1.05 percent.
The effect of a resident visible minority population in a CMA is no different in smaller provinces than it is in larger provinces.
Settlement policy should encourage community participation in immigrant integration.