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Interprovincial Barriers to Labour Mobility in Canada:Policy, Knowledge Gaps and Research Issues

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  • Grady, Patrick
  • Macmillan, Kathleen

Abstract

The purpose of this paper is to identify the most important knowledge gaps on interprovincial barriers to labour mobility in Canada, and to shed some light on potential conceptual, methodological, and data issues associated with research in this area. Consequently, it provides an overview of the current state of play with respect to the most important issues relating to inter-provincial barriers to labour mobility within the Canadian internal market. The three main barriers to labour mobility in Canada, which are considered, are: residency requirements; certain practices regarding occupational licensing, certification and registration; and differences in how occupational qualifications are recognized. These are the main regulatory barriers that are to be removed or reduced under Chapter 7, the Labour Mobility Chapter of the Agreement on Internal Trade (AIT). It also reviews critically the recent relevant research in Canada and in some other jurisdictions (the United States, the European Union and Australia) on barriers to labour mobility. The paper finds that the most important knowledge gap concerns the extent of the regulatory barriers to labour mobility and their impacts and costs. It also concludes that there is nothing fundamentally wrong with the approach of mutual recognition being pursued in Canada to eliminate such regulatory barriers. However, while there has been a fair degree of success in Canada in achieving occupation-specific Mutual Recognition Agreements for occupational qualifications and reconciliation of differences in occupational standards, this progress has been too slow. Moreover, the functioning of the dispute resolution mechanism with respect to Chapter 7, is overly complex and inaccessible. The dispute resolution mechanism in the Alberta-B.C. Trade, Investment and Labour Mobility Agreement is stronger and simpler than that of the AIT, and definitely one to be considered as a model to improve the AIT.

Suggested Citation

  • Grady, Patrick & Macmillan, Kathleen, 2007. "Interprovincial Barriers to Labour Mobility in Canada:Policy, Knowledge Gaps and Research Issues," MPRA Paper 2988, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2988
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    References listed on IDEAS

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    1. Mr. Bennett W Sutton & Mr. Tamim Bayoumi & Mr. Andrew J Swiston, 2006. "Shocking Aspects of Canadian Labor Markets," IMF Working Papers 2006/083, International Monetary Fund.
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    3. Lin, Zhengxi, 1998. "Foreign-born vs Native-born Canadians: A Comparison of Their Inter-provincial Labour Mobility," Analytical Studies Branch Research Paper Series 1998114e, Statistics Canada, Analytical Studies Branch.
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    5. Finnie, Ross, 2000. "Who Moves? A Panel Logit Model Analysis of Inter-provincial Migration in Canada," Analytical Studies Branch Research Paper Series 2000142e, Statistics Canada, Analytical Studies Branch.
    6. Kathleen Day & Stanley Winer, 2006. "Policy-induced internal migration: An empirical investigation of the Canadian case," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(5), pages 535-564, September.
    7. Arlene S. Holen, 1965. "Effects of Professional Licensing Arrangements on Interstate Labor Mobility and Resource Allocation," Journal of Political Economy, University of Chicago Press, vol. 73(5), pages 492-492.
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    Cited by:

    1. Matthew Calver & Roland Tusz & Erika Rodrigues, 2015. "Interprovincial Migration in Canada: Implications for Output and Productivity Growth, 1987-2014," CSLS Research Reports 2015-19, Centre for the Study of Living Standards.
    2. Delina E. Agnosteva & James E. Anderson & Yoto V. Yotov, 2014. "Intra-national Trade Costs: Measurement and Aggregation," NBER Working Papers 19872, National Bureau of Economic Research, Inc.
    3. David Amirault & Daniel de Munnik & Sarah Miller, 2016. "What drags and drives mobility? Explaining Canada's aggregate migration patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1035-1056, August.
    4. Mr. Jorge A Alvarez & Mr. Ivo Krznar & Trevor Tombe, 2019. "Internal Trade in Canada: Case for Liberalization," IMF Working Papers 2019/158, International Monetary Fund.
    5. Andrew Sharpe, 2007. "Three Policies to Improve Productivity Growth in Canada," CSLS Research Reports 2007-05, Centre for the Study of Living Standards.
    6. David Amirault & Naveen Rai, 2016. "Canadian Labour Market Dispersion: Mind the (Shrinking) Gap," Staff Analytical Notes 16-3, Bank of Canada.
    7. Kathleen M. Day & Stanley L. Winer, 2011. "What do we Know about the Relationship between Regionalized Aspects of the Unemployment Insurance System and Internal Migration in Canada?," CESifo Working Paper Series 3479, CESifo.
    8. Andrew Sharpe & Jean-Francois Arsenault & Daniel Ershov, 2007. "The Impact of Interprovincial Migration on Aggregate Output and Labour Productivity in Canada, 1987-2006," International Productivity Monitor, Centre for the Study of Living Standards, vol. 15, pages 25-40, Fall.
    9. Macmillan, Kathleen & Grady, Patrick, 2007. "Interprovincial Barriers to Internal Trade in Goods, Services and Flows of Capital: Policy, Knowledge Gaps and Research Issues," MPRA Paper 8709, University Library of Munich, Germany.
    10. Indermit Gill & Johannes Koettl & Truman Packard, 2013. "Full employment: a distant dream for Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-34, December.

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    More about this item

    Keywords

    : labour; labour mobility; internal markets; internal trade;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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