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A longitudinal analysis of earnings change in Canada

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  • Charles Beach
  • Ross Finnie

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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Bibliographic 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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References

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  1. Paul Beaudry & David Green, 1997. "Cohort Patterns in Canadian Earnings: Assessing the Role of Skill Premia in Inequality Trends," NBER Working Papers 6132, National Bureau of Economic Research, Inc.
  2. Moshe Buchinsky & Jennifer Hunt, 1999. "Wage Mobility In The United States," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 351-368, August.
  3. 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(2), pages 217-272.
  4. Heisz, Andrew & Corak, Miles, 1996. "The Intergenerational Income Mobility of Canadian Men," Analytical Studies Branch Research Paper Series 1996089e, Statistics Canada, Analytical Studies Branch.
  5. Berube, Charles & Morissette, Rene, 1996. "Longitudinal Aspects of Earnings Inequality in Canada," Analytical Studies Branch Research Paper Series 1996094e, Statistics Canada, Analytical Studies Branch.
  6. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  7. 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.
  8. Dardanoni Valentino, 1993. "Measuring Social Mobility," Journal of Economic Theory, Elsevier, vol. 61(2), pages 372-394, December.
  9. Bruce Richard Kennedy, 1989. "Mobility and Instability in Canadian Earnings," Canadian Journal of Economics, Canadian Economics Association, vol. 22(2), pages 383-94, May.
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Citations

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Cited by:
  1. McDonald, James Ted & Worswick, Christopher, 2013. "Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006," CLSSRN working papers clsrn_admin-2013-23, Vancouver School of Economics, revised 29 Apr 2013.
  2. Abbott, Michael & Beach, Charles M., 2009. "Immigrant Earnings Distributions and Earnings Mobility in Canada: Evidence for the 1982 Landing Cohort from IMDB Micro Data," CLSSRN working papers clsrn_admin-2009-22, Vancouver School of Economics, revised 13 Mar 2009.
  3. Irvine, Ian & Finnie, Ross & 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.
  4. Naticchioni, Paolo & Raitano, Michele & Vittori, Claudia, 2014. "La Meglio Gioventù: Earnings Gaps across Generations and Skills in Italy," IZA Discussion Papers 8140, Institute for the Study of Labor (IZA).
  5. Irvine, Ian & Finnie, Ross & Sceviour, Roger, 2004. "La dynamique de l'aide sociale au Canada : le role des attributs individuels et des variables economiques et politiques," Direction des etudes analytiques : documents de recherche 2004231f, Statistics Canada, Direction des etudes analytiques.
  6. Irvine, Ian & Finnie, Ross & 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.
  7. Gray, David & Finnie, Ross & Beach, Charles M., 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.

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