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Shocking Aspects of Canadian Labour Markets

Author

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  • Bayoumi, Tamim
  • Sutton, Bennett
  • Swiston, Andrew J.

Abstract

We analyze the flexibility of the Canadian labour market across provinces in both an inter- and intra-national context using macroeconomic data on employment, unemployment, participation, and (for Canada) migration and real wages. We find that Canadian labour markets respond in a similar manner to their U.S. counterparts and are more flexible than those in major euro area countries. Within Canada, the results indicate that labour markets in Ontario and provinces further west are more flexible, particularly with regard to migration, while those further east are less so.

Suggested Citation

  • Bayoumi, Tamim & Sutton, Bennett & Swiston, Andrew J., 2006. "Shocking Aspects of Canadian Labour Markets," CEPR Discussion Papers 5847, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5847
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    References listed on IDEAS

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    1. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    2. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    3. Pesenti, Paolo & Bayoumi, Tamim & Laxton, Doug, 2004. "Benefits and Spillovers of Greater Competition in Europe: A Macroeconomic Assessment," CEPR Discussion Papers 4481, C.E.P.R. Discussion Papers.
    4. Hans Gersbach, 2004. "Structural Reforms and the Macroeconomy: The Role of General Equilibrium Effects," International Economic Association Series, in: Robert M. Solow (ed.), Structural Reform and Economic Policy, chapter 2, pages 9-22, Palgrave Macmillan.
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    2. Alfonso Arpaia & Aron Kiss & Balazs Palvolgyi & Alessandro Turrini, 2016. "Labour mobility and labour market adjustment in the EU," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    3. Grady, Patrick & Macmillan, Kathleen, 2007. "Interprovincial Barriers to Labour Mobility in Canada:Policy, Knowledge Gaps and Research Issues," MPRA Paper 2988, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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