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Local Labor Markets in Canada and the United States

Author

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

Abstract

We examine local labor markets in the United States and Canada 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, moreeducated immigrant workforce.

Suggested Citation

  • David Albouy & Alex Chernoff & Chandler Lutz & Casey Warman, 2019. "Local Labor Markets in Canada and the United States," Staff Working Papers 19-12, Bank of Canada.
    • Handle: RePEc:bca:bocawp:19-12
    DOI: 10.34989/swp-2019-12
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    Cited by:

    1. 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.
    2. Alex Chernoff & Gabriela Galassi, 2023. "Digitalization: Labour Markets," Discussion Papers 2023-16, Bank of Canada.
    3. 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.
    4. 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.
    5. 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).
    6. Orley C. Ashenfelter & Štěpán Jurajda, 2024. "The U.S. Low-Wage Structure: A McWage Comparison," NBER Working Papers 32708, National Bureau of Economic Research, Inc.
    7. 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.
    8. 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’s tobacco control program]," The Review of Financial Studies, Society for Financial Studies, vol. 34(2), pages 864-906.
    9. 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

    Keywords

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    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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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