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Increasing earnings inequality and the gender pay gap in Canada: Prospects for convergence

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  • Nicole M. Fortin

Abstract

This paper retraces the evolution of Canadian women's labour force participation and of the gender earnings ratio across the generations to understand better the prospects for gender convergence in pay. Using data from the public use Labour Force Surveys (LFS) and administrative annual earnings data from the Longitudinal Worker Files (LWF), the paper assesses the role of increasing top earnings inequality in the persistence of the gender pay gap. Having identified a growing role for the under‐representation of women among top earners, the paper then performs an evaluation and critical analysis of existing gender equality policies, centred on horizontal occupational gender segregation, and discusses alternative policies for the future. Croissance des inégalités de revenus et l’écart de salaire hommes‐femmes au Canada: perspectives de convergence. Cet article retrace l’évolution de la participation des femmes au marché du travail canadien et celle du rapport des salaires femmes–hommes à travers les générations afin de mieux comprendre les perspectives de convergence de ces salaires. En utilisant les données à usage public des Enquêtes sur la population active (EPA), ainsi que les données administratives sur les gains annuels des Fichier de données longitudinales sur la main‐d’œ uvre (FDLMO), l’article évalue le rôle de l’augmentation des inégalités de hauts revenus dans la persistance de l’écart salarial entre les sexes. Ayant identifié l’impact croissant de la sous‐représentation des femmes aux échelons supérieurs de salaires dans l’écart salarial moyen entre les sexes, cet article effectue une évaluation et analyse critique des politiques publiques de parité salariale existantes axées sur la ségrégation occupationnelle horizontale entre hommes et femmes et suggère des politiques alternatives pour l’avenir.

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  • Nicole M. Fortin, 2019. "Increasing earnings inequality and the gender pay gap in Canada: Prospects for convergence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 407-440, May.
  • Handle: RePEc:wly:canjec:v:52:y:2019:i:2:p:407-440
    DOI: 10.1111/caje.12386
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    2. André Cieplinski & Simone D'Alessandro & Chandni Dwarkasing & Pietro Guarnieri, 2022. "Narrowing women’s time and income gaps: an assessment of the synergies between working time reduction and universal income schemes," Working Papers 250, Department of Economics, SOAS University of London, UK, revised Apr 2022.
    3. Carlos Madeira, 2022. "The double impact of deep social unrest and a pandemic: Evidence from Chile," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 135-171, February.
    4. Lance Lochner & Qian Liu & Martin Gervais, 2021. "Innis Lecture: Returns on student loans in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(4), pages 1495-1524, November.
    5. Carpenter, Christopher S. & Feir, Donn. L. & Pendakur, Krishna & Warman, Casey, 2024. "Nonbinary Gender Identities and Earnings: Evidence from a National Census," IZA Discussion Papers 17377, Institute of Labor Economics (IZA).
    6. Karademir, Sencer & Laliberté, Jean-William & Staubli, Stefan, 2023. "The Multigenerational Impact of Children and Childcare Policies," IZA Discussion Papers 15894, Institute of Labor Economics (IZA).
    7. Cieplinski, André & D'Alessandro, Simone & Dwarkasing, Chandni & Guarnieri, Pietro, 2023. "Narrowing women’s time and income gaps: An assessment of the synergies between working time reduction and universal income schemes," World Development, Elsevier, vol. 167(C).
    8. Fang, Tony & Gunderson, Morley & Ha, Viet Hoang & Ming, Hui, 2024. "Intersectional Analysis of the Labour Market Impacts of COVID: The Triple-Whammy of Females, Children, and Lower Skill," IZA Discussion Papers 17235, Institute of Labor Economics (IZA).
    9. Cameron, Anna & Tedds, Lindsay M., 2020. "Gender-based analyisis plus (GBA+) and Intersectionality: Overview, an enhanced framework, and B.C. Case Study," MPRA Paper 105936, University Library of Munich, Germany.
    10. Kamal, Mustafa & Blacklow, Paul, 2021. "Australian age, period, cohort effects in the gender wage gap - 2001 to 2018," Working Papers 2021-02, University of Tasmania, Tasmanian School of Business and Economics.
    11. Singh, Vikkram & Shirazi, Homayoun & Turetken, Jessica, 2022. "COVID-19 and gender disparities: Labour market outcomes," Research in Economics, Elsevier, vol. 76(3), pages 206-217.
    12. Marisetty, Vijaya Bhaskar & Prasad, Salu, 2022. "On the side effects of mandatory gender diversity laws in corporate boards," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).

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