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Local Labor Markets in Canada and the United States

In: Small Differences II: Public Policies in Canada and the United States

Author

Listed:
  • David Albouy
  • Alex Chernoff
  • Chandler Lutz
  • Casey Warman

Abstract

We examine US and Canadian local labor markets from 1990 to 2011 using comparable household and business data. Wage levels and inequality rise with city population in both countries, albeit less in Canada. Neither country saw wage levels converge despite contrasting migration patterns from/to high-wage areas. Local labor demand shifts raise nominal wages similarly, although in Canada they attract immigrant and highly skilled workers more while raising housing costs less. Chinese import competition had a weaker negative impact on manufacturing employment in Canada. These results are consistent with Canada’s more redistributive transfer system and larger, more educated immigrant workforce.
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Suggested Citation

  • David Albouy & Alex Chernoff & Chandler Lutz & Casey Warman, 2016. "Local Labor Markets in Canada and the United States," NBER Chapters, in: Small Differences II: Public Policies in Canada and the United States, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:13975
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    2. Mark Huggett & Wenlan Luo, 2023. "Optimal Income Taxation: An Urban Economics Perspective," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 847-866, December.
    3. Andreas M. Fischer & Philipp Herkenhoff & Philip Sauré, 2023. "Identifying Chinese supply shocks: Effects of trade on labor markets," Review of International Economics, Wiley Blackwell, vol. 31(4), pages 1476-1507, September.
    4. Kazunobu HAYAKAWA & Tadashi ITO & Shujiro URATA, 2022. "Impacts of Increased Chinese Imports on Japan’s Labor Market: Firm and Regional Aspects," Discussion papers 22037, Research Institute of Economy, Trade and Industry (RIETI).
    5. Mayneris, Florian & Behrens, Kristian & Drabo, Manassé, 2021. "Cultural and public services as factors of city resilience? Evidence from big plant closures and downsizing," CEPR Discussion Papers 16723, C.E.P.R. Discussion Papers.
    6. Stuart Gabriel & Matteo Iacoviello & Chandler Lutz, 2021. "A Crisis of Missed Opportunities? Foreclosure Costs and Mortgage Modification During the Great Recession [Synthetic control methods for comparative case studies: Estimating the effect of California," The Review of Financial Studies, Society for Financial Studies, vol. 34(2), pages 864-906.
    7. Alex Chernoff & Gabriela Galassi, 2023. "Digitalization: Labour Markets," Discussion Papers 2023-16, Bank of Canada.
    8. Orley Ashenfelter & Štěpán Jurajda, 2024. "U.S. Low-Wage Structure: A McWage Comparison," Working Papers 658, Princeton University, Department of Economics, Industrial Relations Section..
    9. Ramya Rajajagadeesan Aroul & Sanjiv Sabherwal & Sergiy Saydometov, 2022. "FEAR Index, city characteristics, and housing returns," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(1), pages 173-205, March.
    10. Roland Meyer & Gert Brunekreeft & George Elias, 2020. "TOTEX Malmquist index for CPI-X regulation: Does it correctly estimate the true frontier shift?," Journal of Regulatory Economics, Springer, vol. 58(1), pages 78-97, August.

    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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