This paper uses LAD panel data to investigate how variability of workers' earnings and earnings instability for Canada changed between 198289 and 199097. Following the methodology of Gottschalk and Moffitt (1994), we decompose the total variation of workers' earnings into permanent variation and a transitory component (or earnings instability). It is found that: (i) there has been an increase in overall earnings variability among Canadian workers between the two sub-periods, with the increase much more marked among men, particularly with non-continuous labour market attachment; (ii) the greatest part of this increase in earnings variability was driven by widening "permanent" earnings differentials across workers and not by transitory movements in individuals' earnings; and (iii) men's earnings variability tends to be U-shaped across ages, whereas it is much flatter for women, and for both sexes earnings instability is high for young wor kers and decreases with age.
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Volume (Year): 29 (2003) Issue (Month): s1 (January) Pages: 41-64 Download reference. The following formats are available: HTML
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