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Different Paths? Human Capital Prices, Wages, and Inequality in Canada and the United States

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  • Audra J. Bowlus
  • Chris Robinson
  • Haoming Liu

Abstract

In the last three decades, Canada and the United States showed different paths in per capita gross domestic product growth, skill premiums, and inequality. Worker quality and price differences both play a role but are difficult to distinguish. Human capital prices and quantities are estimated using methods we developed previously. In the United States, there was faster growth and a much more rapid rise in skill premia and inequality. This was primarily due to different paths for the relative price paid to rent high-skilled human capital in the two countries, rather than differences in relative quantities.

Suggested Citation

  • Audra J. Bowlus & Chris Robinson & Haoming Liu, 2019. "Different Paths? Human Capital Prices, Wages, and Inequality in Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 689-734.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/703264
    DOI: 10.1086/703264
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    Cited by:

    1. Audra Bowlus & Eda Bozkurt & Lance Lochner & Chris Robinson, 2017. "Wages and Employment: The Canonical Model Revisited," NBER Working Papers 24069, National Bureau of Economic Research, Inc.
    2. Audra Bowlus & Youngmin Park & Chris Robinson, 2022. "Contribution of Human Capital Accumulation to Canadian Economic Growth," Discussion Papers 2022-7, Bank of Canada.
    3. Audra Bowlus & Émilien Gouin‐Bonenfant & Huju Liu & Lance Lochner & Youngmin Park, 2022. "Four decades of Canadian earnings inequality and dynamics across workers and firms," Quantitative Economics, Econometric Society, vol. 13(4), pages 1447-1491, November.
    4. Sarah Burkinshaw & Yaz Terajima & Carolyn A. Wilkins, 2022. "Income Inequality in Canada," Discussion Papers 2022-16, Bank of Canada.

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