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Shocking Aspects of Canadian Labor Markets

  • Bennett Sutton
  • Tamim Bayoumi
  • Andrew Swiston

We analyze the flexibility of the Canadian labor market across provinces in both an interand intra-national context using macroeconomic data on employment, unemployment, participation, and (for Canada) migration and real wages. We find that Canadian labor 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 labor markets in Ontario and provinces further west are more flexible, particularly with regard to migration, while those further east are less so.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/83.

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Length: 30
Date of creation: 01 Mar 2006
Date of revision:
Handle: RePEc:imf:imfwpa:06/83
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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. Gersbach, Hans, 2003. "Structural Reforms and the Macroeconomy: The Role of General Equilibrium Effects," CEPR Discussion Papers 4043, C.E.P.R. Discussion Papers.
  3. International Monetary Fund, 2005. "Canada; 2005 Article IV Consultation-Staff Report; Staff Statement; and the Public Information Notice on the Executive Board Discussion for Canada," IMF Staff Country Reports 05/118, International Monetary Fund.
  4. 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.
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