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What Is Happening in the Youth Labour Market in Canada?

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Author Info
Paul Beaudry ()
Thomas Lemieux ()
Daniel Parent ()

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Abstract

This paper analyzes the evolution of the labour market participation rate of men and women age 15 to 24 from 1976 to 1998. The0501n question being asked is why youth participation rates fell precipitously during the 1990s? We look at two dimensions of this decline: changes in the participation rate of youth who are not attending school (non-student participation rate) and changes in the employment rate of students. We find that the decline in the non-student participation rate is a consequence of two factors: (1) the overall bad state of the labour market in Canada during the 1990s, and (2) the large increase in school enrollment rates induced by factors other than the state of the labour market. One important finding is that demographic changes (baby boom vs baby bust) is a key explanation behind the steep increase in enrollment rates during the 1980s and 1990s. The only component of youth participation rates which seems to be a problem specific to the 1990s is the sharp drop in employment rates of students age 15 to 19.

Cette étude vise à analyser l'évolution du taux de participation des jeunes Canadiens âgés de 15 à 24 ans au cours de la période allant de 1976 à 1998. Plus précisément, nous cherchons à comprendre pourquoi le taux de participation des jeunes a chuté au cours des années 90. Pour ce faire, nous examinons les changements dans le taux de participation des jeunes qui ne fréquentent pas l'école ainsi que les changements dans le taux d'emploi des étudiants. Les résultats indiquent que la baisse du taux de participation des jeunes découle de deux facteurs : (1) les mauvaises conditions globales du marché du travail au Canada durant les années 90, et (2) l'augmentation substantielle de la fréquentation scolaire causée par des facteurs autres que l'effet induit par les conditions du marché du travail. Un résultat important est que les changements démographiques constituent un facteur-clé pouvant expliquer l'accroissement important des taux de fréquentation scolaire au cours des années 80 et 90. La seule composante pouvant expliquer la chute des taux de participation qui soit spécifique aux années 90 est la forte baisse des taux d'emploi des étudiants âgés de 15 à 19 ans.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 99s-44.

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Date of creation: 01 Nov 1999
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Handle: RePEc:cir:cirwor:99s-44

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Related research
Keywords: Education; labour market; Éducation; marché du travail;

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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.:

  1. Paul Beaudry & David A. Green, 2000. "Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 907-936, November. [Downloadable!] (restricted)
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  2. David Card & Thomas Lemieux, 1997. "Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth," NBER Working Papers 6142, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Robert Shimer, 1999. "The Impact of Young Workers on the Aggregate Labor Market," NBER Working Papers 7306, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Sanders Korenman & David Neumark, 1997. "Cohort Crowding and Youth Labor Markets: A Cross-National Analysis," NBER Working Papers 6031, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. J. Emery & Ana Ferrer, 2009. "Marriage market imbalances and labor force participation of Canadian women," Review of Economics of the Household, Springer, vol. 7(1), pages 43-57, March. [Downloadable!] (restricted)
  2. Daniel Parent, 2004. "The Effect of High School Employment on Educational Attainment in Canada," Cahiers de recherche 0413, CIRPEE. [Downloadable!]
  3. Frank T. Denton & Christine H. Feaver & Byron G. Spencer, 2002. "Alternative Pasts, Possible Futures: A "What If" Study of the Effects of Fertility on the Canadian Population and Labour Force," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 443-459, September. [Downloadable!] (restricted)
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  4. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2006. "The Short- and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates," NBER Working Papers 12159, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Heisz, Andrew & Nakamura, A. & Picot, Garnett, 2001. "Job Tenure, Worker Mobility and the Youth Labour Market During the 1990s," Analytical Studies Branch Research Paper Series 2001155e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  6. Daniel Parent, 1999. "Labour Market Outcomes and Schooling in Canada: Has the Value of a High School Degree Changed over Time?," CIRANO Working Papers 99s-42, CIRANO. [Downloadable!]
  7. Daniel Parent, 2002. "La Prime Associée au Diplôme d'Études Secondaires et le Décrochage Scolaire au Canada," CIRANO Project Reports 2002rp-05, CIRANO. [Downloadable!]
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