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Distributional Gains Of Near Higher Earners

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  • Charles Beach

Abstract

This paper looks at changes in employment and relative wages of near higher earnings (NHE) workers between middle-class (MC) and higher earners (HE) in Canada over 2000-2015. An approach is also forwarded for evaluating these changes in terms of underlying demand and supply factors. It is found that the NHE behaves as a transition group between quite different patterns of change of the MC and HE groups, and that these changes have been recently attenuating. The MC group experienced a downward shift in employment demand, the HE group an upward shift in demand, and the NHE group an upward shift in supply of workers.

Suggested Citation

  • Charles Beach, 2018. "Distributional Gains Of Near Higher Earners," Working Paper 1398, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1398
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1398.pdf
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    References listed on IDEAS

    as
    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
    2. Paul Beaudry & David A. Green & Benjamin M. Sand, 2016. "The Great Reversal in the Demand for Skill and Cognitive Tasks," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 199-247.
    3. David A. Green & Benjamin M. Sand, 2015. "Has the Canadian labour market polarized?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 612-646, May.
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    5. David A. Green, 2015. "Chasing after good jobs. Do they exist and does it matter if they do?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(4), pages 1215-1265, November.
    6. Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1229-1292, November.
    7. Michael Elsby & Bart Hobijn & Ayseful Sahin, 2013. "The Decline of the U.S. Labor Share," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(2 (Fall)), pages 1-63.
    8. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2016. "Import Competition and the Great US Employment Sag of the 2000s," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 141-198.
    9. Charles M. Beach, 2017. "Have Middle-class Earnings Risen In Canada? A Statistical Inference Approach," Working Paper 1393, Economics Department, Queen's University.
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    More about this item

    Keywords

    near higher earnings; Income equality; Canadian earnings;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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