Are Good Jobs Disappearing in Canada?
AbstractUsing hourly wage data from the Labour Force Survey as well as previous household surveys covering the 1981-2004 period, we assess whether the relative importance of low-paid jobs and well-paid jobs has changed over the last two decades. Since it is unclear whether trends in wage levels obtained from all the aforementioned surveys are unbiased, we refrain from making definitive statements regarding the evolution of low-paid and well-paid jobs over the 1981-2004 period. When assessing whether well-paid jobs are disappearing in Canada, we focus our attention on recent trends, i.e. on changes in the fraction of jobs falling in certain (real) wage categories during the 1997-2004 period. We find little evidence that the relative importance of well-paid jobs - however defined - has fallen over the last two decades or since the second half of the 1990s. We also find little evidence that the relative importance of low-paid jobs, those paying less than $10.00 per hour, has risen during these two periods. We show, along with numerous previous studies, that the wage gap between young workers and their older counterparts has risen substantially over the last two decades but that the wage gap between university graduates and other workers has shown little change. More important, we show that, within age groups, wages of newly hired male and female employees - those with two years of seniority or less - have fallen substantially relative to those of others. Second, in the private sector, the fraction of new employees employed in temporary jobs has risen substantially, increasing from 11% in 1989 to 21% in 2004. Among employees with one year of seniority or less, the incidence of temporary work rose from 14% in 1989 to 25% in 2004. Third, pension coverage has fallen among men of all ages and among females under 45. Taken together, these findings suggest that Canadian firms (existing or newly-born) have responded to growing competition within industries and from abroad
Download InfoIf 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.
Bibliographic InfoPaper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 2005239e.
Date of creation: 26 Jan 2005
Date of revision:
Labour; Income; pensions; spending and wealth; Employment and unemployment; Wages; salaries and other earnings; Non-wage benefits; Pension plans and funds and other retirement income programs;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-BEC-2006-02-05 (Business Economics)
- NEP-LAB-2006-02-05 (Labour Economics)
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.:
- 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.
- Paul Beaudry & David Green, 1997. "Cohort Patterns in Canadian Earnings: Assessing the Role of Skill Premia in Inequality Trends," NBER Working Papers 6132, National Bureau of Economic Research, Inc.
- J. B. Burbidge & L. Magee & A. Leslie Robb, 2002.
"The Education Premium in Canada and the United States,"
Canadian Public Policy,
University of Toronto Press, vol. 28(2), pages 203-217, June.
- J.B. Burbidge & L. Magee & A.L. Robb, 2001. "The Education Premium in Canada and the United States," Quantitative Studies in Economics and Population Research Reports 364, McMaster University.
- J.B. Burbidge & L. Magee & A.L. Robb, 2001. "The Education Premium in Canada and the United States," Social and Economic Dimensions of an Aging Population Research Papers 60, McMaster University.
- Doiron, Denise J & Barrett, Garry F, 1996. "Inequality in Male and Female Earnings: The Role of Hours and Wages," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 410-20, August.
- Andrew Jackson, 2005. "Productivity and Building Human Capital for the "Bottom Third"," International Productivity Monitor, Centre for the Study of Living Standards, vol. 11, pages 7-13, Fall.
- Heather Scott-Marshall, 2010. "The Social Patterning of Work-Related Insecurity and its Health Consequences," Social Indicators Research, Springer, vol. 96(2), pages 313-337, April.
- Morissette, Rene Ostrovsky, Yuri, 2005. "Summary Of: The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001," Analytical Studies Branch Research Paper Series 2005266e, Statistics Canada, Analytical Studies Branch.
- Morissette, Rene Picot, Garnett, 2005. "Summary Of: Low-paid Work and Economically Vulnerable Families over the Last Two Decades," Analytical Studies Branch Research Paper Series 2005249e, Statistics Canada, Analytical Studies Branch.
- Morissette, Rene Picot, Garnett, 2005. "Low-paid Work and Economically Vulnerable Families over the Last Two Decades," Analytical Studies Branch Research Paper Series 2005248e, Statistics Canada, Analytical Studies Branch.
- Morissette, Rene Johnson, Anick, 2007. "Offshoring and Employment in Canada: Some Basic Facts," Analytical Studies Branch Research Paper Series 2007300e, Statistics Canada, Analytical Studies Branch.
- Morissette, Rene Ostrovsky, Yuri, 2005. "The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001," Analytical Studies Branch Research Paper Series 2005265e, Statistics Canada, Analytical Studies Branch.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Brown).
If references are entirely missing, you can add them using this form.