The Canada-U.S. Free Trade Agreement and Labour Market Adjustment in Canada
Abstract
Evidence suggests that the Canada-U.S. Free Trade Agreement (CUSTA) had almost no effect on earnings and had a small negative effect on manufacturing employment. Theory suggests that a change in trade policy may affect skilled and less-skilled workers differently. The labour market consequences of CUSTA tariff reductions are analysed in this paper. It is found that the tariff reductions lowered employment predominantly among less-skilled workers but did not affect the earnings of either skilled or less-skilled workers. The employment effects are due to the fact that relatively less-skill-intensive industries were more highly protected than high-skill-intensive industries prior to CUSTA.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 1998-11.Length:
Date of creation: 02 Oct 1998
Date of revision: 02 Oct 1998
Handle: RePEc:clg:wpaper:1998-11
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Related research
Keywords:Other versions of this item:
- Eugene Beaulieu, 2000. "The Canada-U.S. Free Trade Agreement and labour market adjustment in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 33(2), pages 540-563, May.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Jen Baggs & James A Brander, 2006.
"Trade liberalization, profitability, and financial leverage,"
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Palgrave Macmillan, vol. 37(2), pages 196-211, March.
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492, Economic Research Forum, revised Jun 2009.
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"The Long and Short of the Canada-U.S. Free Trade Agreement,"
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8293, National Bureau of Economic Research, Inc.
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2003014e, Statistics Canada, Analytical Studies Branch.
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