Cultural Diversity and Socio-Economic Outcomes in Canada

Project Lead

Team Members

Sub-Theme: Placemaking and Relationship Formation

Through studying and redesigning public spaces and social infrastructure, this sub-theme will enhance our understanding of building better places that foster friendship and relationship within communities, as well as between Indigenous people and the newcomer population.

Objective

The economic impact of cultural diversity warrants particular attention in the Canadian context, where immigration rates have risen sharply in recent decades. Modern migration flows are characterized by increasing diversity in admission categories and demographic attributes. This heterogeneity has led to substantial increases in cultural diversity, particularly in urban and metropolitan areas, which are the epicenters of Canada’s economic activity. While rising cultural diversity holds the potential to enhance productivity, innovation, and economic growth, its effects remain underexplored. Existing literature has primarily focused on the short-term relationships of immigration with earnings, wages and unemployment and other labor market outcomes, often overlooking the broader consequences of cultural diversity for regional outcomes.

This project aims to examine how cultural diversity, measured by the diversity of immigrants’ countries of birth, shapes economic, social and health outcomes across Canadian regions. It seeks to assess whether rising diversity enhances well-being and growth, and to identify the broader implications for Canada’s social and economic landscape.

Research Questions

Is rising cultural diversity good for Canadian residents?
How does the diversity of countries of birth within a population influence the social, economic and health outcomes of regions and the well-being of Canadians?
What are the broader implications of increasing cultural diversity for Canada?

Methodology

The project combines provincial- and individual-level analyses using Canadian Census data and supplementary health datasets. It develops a regional diversity index and applies econometric methods, including instrumental variables and natural experiments, to estimate causal impacts.