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A longitudinal analysis of earnings change in Canada

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Author Info
Charles Beach
Ross Finnie

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Abstract

We use tax-based longitudinal microdata for 1982-99 to (i) examine how earnings distributions have shifted, (ii) identify changes in earnings mobility patterns, and (iii) replicate and update Beaudry and Green's cohort analysis of age-earnings profiles. We find: (i) increased polarization of men's earnings and marked decline in real earnings of workers aged 20-4; (ii) general decline in men's earnings mobility, while women's mobility has increased for young and prime-age workers; and (iii) upward drift in earnings profiles of 1960s-1970s entry cohorts and downward shifts for 1980s-1990s cohorts (largely confirming Beaudry and Green's findings), but suggestive of steepening profiles for the 1990s cohorts.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 37 (2004)
Issue (Month): 1 (February)
Pages: 219-240
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Handle: RePEc:cje:issued:v:37:y:2004:i:1:p:219-240

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Peter Gottschalk & Robert Moffitt, 1994. "The Growth of Earnings Instability in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994-2), pages 217-272. [Downloadable!]
  2. Bourguignon, F. & Morrisson, C. & Atkinson, A.B., 1991. "Empirical Studies of Earnings Mobility," DELTA Working Papers 91-14, DELTA (Ecole normale supérieure).
  3. Paul Beaudry & David A. Green, 2000. "Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 907-936, November. [Downloadable!] (restricted)
    Other versions:
  4. Moshe Buchinsky & Jennifer Hunt, 1996. "Wage Mobility in the United States," NBER Working Papers 5455, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Bruce Richard Kennedy, 1989. "Mobility and Instability in Canadian Earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 22(2), pages 383-94, May. [Downloadable!] (restricted)
  6. Bérubé, Charles & Morissette, René, 1996. "Longitudinal Aspects of Earnings Inequality in Canada," Analytical Studies Branch Research Paper Series 1996094e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  7. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December. [Downloadable!] (restricted)
  8. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December. [Downloadable!] (restricted)
  9. Corak, Miles & Heisz, Andrew, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  10. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Beach, Charles M. & Finnie, Ross & Gray, David, 2006. "The Impact of Macroeconomic Conditions on the Instability and Long-Run Inequality of Workers' Earnings in Canada," Analytical Studies Branch Research Paper Series 2006268e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2004. "Welfare Dynamics in Canada: The Role of Individual Attributes and Economic-policy Variables," Analytical Studies Branch Research Paper Series 2004231e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2005. "Social Assistance Use in Canada: National and Provincial Trends in Incidence, Entry and Exit," Analytical Studies Branch Research Paper Series 2005245e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  4. Finnie, Ross & Irvine, Ian & Sceviour, Roger, 2004. "La dynamique de l'aide sociale au Canada : le rôle des attributs individuels et des variables économiques et politiques," Direction des études analytiques : documents de recherche 2004231f, Statistics Canada, Direction des études analytiques. [Downloadable!]
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