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Globalisation and Wage Inequality: A Comparison of the Manufacturing Sector in Canada and the United States from 1970 to 2001

Author

Listed:
  • Gilles Grenier

    (University of Ottawa)

  • Akbar Tavakoli

    (Isfahan University of Technology)

Abstract

This article compares Canada and the United States in terms of the evolution of the relative wages of production and non-production workers in the manufacturing sector. The results show that the wage ratio is affected by similar economic globalisation variables in each country. Other than technological changes, however, the overall effect of globalisation is more pronounced in Canada. Among economic globalisation variables, such as technological changes and imports from developing countries, the latter has had a less harmful effect on low-skilled workers in the United States than those in Canada. Among the other variables, the wage gap is more affected by union density in Canada. The impact of immigration is low in both countries.

Suggested Citation

  • Gilles Grenier & Akbar Tavakoli, 2009. "Globalisation and Wage Inequality: A Comparison of the Manufacturing Sector in Canada and the United States from 1970 to 2001," Journal of Income Distribution, Ad libros publications inc., vol. 18(1), pages 53-69, March.
    • Handle: RePEc:jid:journl:y:2009:v:18:i:1:p:53-69
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    More about this item

    Keywords

    wages; skills; globalisation; Canada; United States;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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