The responsiveness of industry wages to low-frequency shocks in Canada
AbstractThe first objective of this paper is to examine the empirical relationship between low-frequency shocks to labour demand and average wages on an industrial basis using a Canadian longitudinal data set. We estimate a fixed-effects model that controls for workers' unobservable attributes. The second major objective is to extend the existing industry-based literature by estimating a specification allowing for a comparison between the degree of wage responsiveness of within-firm stayers and between-firm movers. The findings indicate that average wages by industry tend to respond positively to low frequency changes in employment, and that there is some degree of wage flexibility within firm-worker matches.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 43 (2010)
Issue (Month): 4 (November)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
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- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
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