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The Effects of Inter-provincial Mobility on Individuals' Earnings: Panel Model Estimates for Canada

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  • Finnie, Ross

Abstract

This paper presents the findings of an empirical investigation of the effects of inter-provincial migration on individuals' earnings based on the newly available Longitudinal Administrative Database (LAD). The main results are based on a difference model which estimates the effects of mobility on (log) earnings which implicitly controls for initial earnings levels and other fixed effects, as well as other influences captured by the regressors included in the models. Inter-provincial mobility is found to be associated with statistically significant and in many cases quantitatively substantial changes in individuals' earnings, with these effects varying by age, sex, and province of origin. Pre- and post-move earnings profiles are also analysed, offering support for the validity of the difference model approach and indicating that movers are quickly integrated into local labour markets after their moves. Implications are discussed and possible directions for future research are suggested.

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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2001163e.

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Date of creation: 25 Oct 2001
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Handle: RePEc:stc:stcp3e:2001163e

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Related research

Keywords: Labour; Labour mobility; turnover and work absences; Mobility and migration; Population and demography; Wages; salaries and other earnings;

References

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  1. Finnie, R. & Gray, D., 1998. "The Dynamics of the Earnings Distribution in Canada: An Econometric Analysis," Working Papers, University of Ottawa, Department of Economics 9803e, University of Ottawa, Department of Economics.
  2. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
  3. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  4. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-44, February.
  5. Thomas J. Courchene, 1970. "Interprovincial Migration and Economic Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 3(4), pages 550-76, November.
  6. Finnie, R. & Gray, D., 1998. "The Dynamics of the Earnings Distribution in Canada: An Econometric Analysis," Working Papers, University of Ottawa, Department of Economics 9803e, University of Ottawa, Department of Economics.
  7. Shaw, R Paul, 1986. "Fiscal versus Traditional Market Variables in Canadian Migration," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(3), pages 648-66, June.
  8. Osberg, L. & Gordon, D. & Lin, Z., 1992. "Inter-Regional Migration and Inter-Industry Labour Mobility in Canada: A Simultaneous Approach," Department of Economics at Dalhousie University working papers archive, Dalhousie, Department of Economics 92-08, Dalhousie, Department of Economics.
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Citations

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Cited by:
  1. David E. Wildasin, 2003. "Fiscal Policy, Human Capital, and Canada-US Labor Market Integration," Public Economics, EconWPA 0309006, EconWPA.
  2. Andrew Sharpe, 2007. "Three Policies to Improve Productivity Growth in Canada," CSLS Research Reports, Centre for the Study of Living Standards 2007-05, Centre for the Study of Living Standards.
  3. 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, Centre for the Study of Living Standards, vol. 15, pages 25-40, Fall.

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