This study examines the per capita household income gap between native-born Canadians and non-European immigrants between 1996 and 2006, using the Blinder-Oaxaca decomposition method to determine the role of the individual and institutional factors on this gap. Results show that the per capita income gap is still wide between the two groups even though it decreased slightly during that period. Moreover, the difference in individual characteristics explains only a small portion of the per capita income gap. Most of it is linked to the difference in the outcome of the characteristics. Finally, the unexplained part of the per capita income gap could be greatly reduced only by eliminating the unexplained effect of human capital variables