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Canadian Wage Inequality over the Last Two Decades

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  • Burbidge, John B
  • Magee, Lonnie
  • Robb, A Leslie

Abstract

We study the dispersion of wages of full-time full-year workers over two decades controlling for both education and experience. Applying non-parametric statistical methods we find statistically significant and large increases in inequality for males with low levels of education and experience coexist with more modest changes in inequality for older, more experienced workers with a university degree. These relative patterns tend to be similar for females though with a stronger tendency towards inequality in each education-experience category. Given the recent focus in this debate on the issue of polarization, we also show graphs of the actual distributions of wages and analyze these to conclude that the groups experiencing increased dispersion do display what is commonly known as polarization though it would be an exaggeration to claim that the jobs in the middle of the distribution have vanished.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 22 (1997)
Issue (Month): 2 ()
Pages: 181-203

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Handle: RePEc:spr:empeco:v:22:y:1997:i:2:p:181-203

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Cited by:
  1. Gray, David & Finnie, Ross & Beach, Charles M., 2006. "Sommaire de : L'effet des conditions macroeconomiques sur l'instabilite et l'inegalite a long terme des gains des travailleurs au Canada," Direction des etudes analytiques : documents de recherche 2006269f, Statistics Canada, Direction des etudes analytiques.
  2. A.L Robb & L. Magee & J.B. Burbidge, 2003. "WAGES in CANADA: SCF, SLID, LFS and the Skill Premium," Quantitative Studies in Economics and Population Research Reports 386, McMaster University.
  3. Matthew Brzozowski & Martin Gervais & Paul Klein & Michio Suzuki, 2010. "Consumption, Income, and Wealth Inequality in Canada," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 52-75, January.
  4. Lars Osberg, 2003. "Long Run Trends in Income Inequality in the United States, UK, Sweden, Germany and Canada: A Birth Cohort View," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 121-141, Winter.
  5. 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.
  6. Gray, David & Finnie, Ross & Beach, Charles M., 2006. "Summary Of: The Impact of Macroeconomic Conditions on the Instability and Long-Run Inequality of Workers' Earnings in Canada," Analytical Studies Branch Research Paper Series 2006269e, Statistics Canada, Analytical Studies Branch.
  7. Finnie, Ross & Gray, David, 2002. "Earnings dynamics in Canada: an econometric analysis," Labour Economics, Elsevier, vol. 9(6), pages 763-800, December.
  8. Peter Kuhn (McMaster) & A. Leslie Robb (McMaster), . "Shifting Skill Demand and the Canada-US Unemployment Gap: Evidence from Prime-Age Men," Canadian International Labour Network Working Papers 01, McMaster University.
  9. Sharpe, Andrew & Zyblock, Myles, 1997. "Macroeconomic performance and income distribution in Canada," The North American Journal of Economics and Finance, Elsevier, vol. 8(2), pages 167-199.
  10. David Andolfatto & James Redekop, 1998. "Redistribution Policy in a Model with Heterogeneous Time Preference," Cahiers de recherche CREFE / CREFE Working Papers 66, CREFE, Université du Québec à Montréal.
  11. J.B. Burbidge & L. Magee & A.L. Robb, 2001. "The Education Premium in Canada and the United States," Quantitative Studies in Economics and Population Research Reports 364, McMaster University.
  12. J.B. Burbidge & L. Magee & A.L. Robb, . "Cohort, Year and Age Effects in Canadian Wage Data," Canadian International Labour Network Working Papers 13, McMaster University.
  13. Lars Osberg, 1996. "Economic Growth, Income Distribution and Economic Welfare in Canada 1975-1994," Department of Economics at Dalhousie University working papers archive econgrow, Dalhousie, Department of Economics.

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