Advanced Search
MyIDEAS: Login

Skill Differentials in Canada in an Era of Rising Labor Market Inequality

In: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States

Contents:

Author Info

  • Richard B. Freeman
  • Karen Needels

Abstract

This paper examines educational earnings differentials in Canada in the 1980s and compares changes in differentials to those in the United States. Our major finding is that the college/high school differential increased much less in Canada than in the United States. We also find that within educational groups the distribution of earnings widened, gender pay gaps narrowed, and age pay gaps increased in Canada as in the United States. The greater growth of the college graduate proportion of the work force in Canada than in the United States is one important reason why differentials rose more modestly in Canada than in the United States. The greater strength of Canadian unions in wage-setting, and the faster growth of real national output, and better trade balance in Canada may also have contributed to the lesser rise in differentials. Because Canada and the United States have so many characteristics in common, we interpret our results as indicating that the massive rise of skill differentials in the United States was not the result of some inexorable shift in the economic structure of advanced capitalist countries, but rather reflected specific developments in the U.S. labor market and the way in which the country's decentralised wage-setting system adjusted to these developments.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/chapters/c11145.pdf
Download Restriction: no

Bibliographic Info

as in new window

This chapter was published in:

  • David Card & Richard B. Freeman, 1993. "Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States," NBER Books, National Bureau of Economic Research, Inc, number card93-1.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 11145.

    Handle: RePEc:nbr:nberch:11145

    Contact details of provider:
    Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Email:
    Web page: http://www.nber.org
    More information through EDIRC

    Related research

    Keywords:

    Other versions of this item:

    References

    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.:
    as in new window
    1. Ashenfelter, Orley & Card, David, 1986. "Why Have Unemployment Rates in Canada and the United States Diverged?," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S171-95, Supplemen.
    2. Vaillancourt, F. & Henriques, I., 1986. "The Returns to University Schooling in Canada," Cahiers de recherche 8608, Universite de Montreal, Departement de sciences economiques.
    3. Francois Vaillancourt & Irene Henriques, 1986. "The Returns to University Schooling in Canada," Canadian Public Policy, University of Toronto Press, vol. 12(3), pages 449-458, September.
    4. McWatters, C.G. & Beach, C.M., 1989. "The Changes Behind Canada's Income Distribution: Cause for Concern?," Papers 1989-1, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
    5. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
    6. Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc.
    7. Lawrence F. Katz & Ana L. Revenga, 1989. "Changes in the Structure of Wages: The U.S. versus Japan," NBER Working Papers 3021, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:11145. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.