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Canadian Labour Market Developments in International Context: Flexibility, Regulation and Demand

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  • Jim Stanford

Abstract

Canada's labour market performed badly in the 1990s, compared both to the set of industrialized countries and to its main comparator, the United States. This has prompted numerous calls for measures that would make Canada's labour market more "flexible." Much evidence suggests, however, that Canada's labour market is not at all "inflexible," in the common sense of being able to change and to adapt to change. Advocates of labour market flexibility are often actually calling for policies of labour market deregulation. While Canada's labour market is more regulated than that of the US, by international standards it is relatively deregulated. There is no correlation, however, between the intensity of labour market regulation and the employment performance of OECD countries during the 1990s; aggregate demand conditions are a more powerful predictor of employment performance than are comparative regulatory structures.

Suggested Citation

  • Jim Stanford, 2000. "Canadian Labour Market Developments in International Context: Flexibility, Regulation and Demand," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 27-58, July.
  • Handle: RePEc:cpp:issued:v:26:y:2000:i:s1:p:27-58
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    References listed on IDEAS

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    1. Peter Kuhn, "undated". "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.
    2. Coulombe, S. & Lee, F.C., 1993. "Regional Economic Disparities in Canada," Working Papers 9317e, University of Ottawa, Department of Economics.
    3. Jørgen Elmeskov & Karl Pichelmann, 1993. "Unemployment and Labour Force Participation: Trends and Cycles," OECD Economics Department Working Papers 130, OECD Publishing.
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    Cited by:

    1. Thomas I. Palley, 2001. "The Role of Institutions and Policies in Creating High European," Macroeconomics 0108007, University Library of Munich, Germany.
    2. Jim Stanford, 2005. "Revisiting the "Flexibility Hypothesis"," Canadian Public Policy, University of Toronto Press, vol. 31(1), pages 109-116, March.
    3. Dilmaghani, Maryam, 2020. "Beauty perks: Physical appearance, earnings, and fringe benefits," Economics & Human Biology, Elsevier, vol. 38(C).

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