The Declining Labour Market Outcomes of the Less Skilled: Can Fiscal Policy Make a Difference?
Since the mid-1970s, unskilled Canadian men have experienced very sizeable reductions in real wages, and they now work substantially fewer weeks per year. This article discusses a wide range of possible policy responses to this phenomenon, arguing that the best short-term response is the expansion of earned-income tax credits, and the best long-term response involves improvements in the basic skills provided by our education system. At the same time, it argues that drastic short-term responses are not warranted because (i) recent trends in male wage inequality have, to a large extent, simply undone a major compression in male wages that occurred in the early 1970s; and (ii) these trends may be part of a broader shift in the labour market that has also produced some important winners, especially skilled women, whose labour-market prospects have dramatically improved.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 24 (1998)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: |
Web page: http://economics.ca/cpp/
|Order Information:|| Web: http://www.utpjournals.com/cpp/ Email: |
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.:
- Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
- Juhn, Chinhui & Murphy, Kevin M, 1997.
"Wage Inequality and Family Labor Supply,"
Journal of Labor Economics,
University of Chicago Press, vol. 15(1), pages 72-97, January.
- Topel, Robert H, 1994. "Regional Labor Markets and the Determinants of Wage Inequality," American Economic Review, American Economic Association, vol. 84(2), pages 17-22, May.
- Matthew J. Slaughter, 1995. "Multinational Corporations, Outsourcing, and American Wage Divergence," NBER Working Papers 5253, National Bureau of Economic Research, Inc.
- Bedard, Kelly & Ferrall, Christopher, 2003. "Wage and test score dispersion: some international evidence," Economics of Education Review, Elsevier, vol. 22(1), pages 31-43, February.
- Richard B. Freeman & Karen Needels, 1993.
"Skill Differentials in Canada in an Era of Rising Labor Market Inequality,"
in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 45-68
National Bureau of Economic Research, Inc.
- Richard B. Freeman & Karen Needels, 1991. "Skill Differentials in Canada in an Era of Rising Labor Market Inequality," NBER Working Papers 3827, National Bureau of Economic Research, Inc.
- Eissa, Nada & Hoynes, Hilary Williamson, 1999.
"The Earned Income Tax Credit and the Labor Supply of Married Couples,"
Department of Economics, Working Paper Series
qt1024b9z8, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- N. Eissa & H. W. Hoynes, . "The Earned Income Tax Credit and the Labor Supply of Married Couples," Institute for Research on Poverty Discussion Papers 1194-99, University of Wisconsin Institute for Research on Poverty.
- Nada Eissa & Hilary Williamson Hoynes, 1998. "The Earned Income Tax Credit and the Labor Supply of Married Couples," NBER Working Papers 6856, National Bureau of Economic Research, Inc.
- Nada Eissa & Hilary Williamson Hoynes, 2000. "The Earned Income Tax Credit and the Labor Supply of Married Couples," Public Economics 9912001, EconWPA.
- Hoxby, Caroline Minter, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 671-718, August.
- Peter Kuhn, . "Canada and the "OECD Hypothesis": Does Labour Market Inflexibility Explain Canada's High Level of Unemployment?," Canadian International Labour Network Working Papers 10, McMaster University.
- Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
- Borjas, George J & Ramey, Valerie A, 1995. "Foreign Competition, Market Power, and Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1075-1110, November.
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
- James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
When requesting a correction, please mention this item's handle: RePEc:cpp:issued:v:24:y:1998:i:3:p:370-377. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.