The Effect of Technology and Trade on Wage Differentials Between Nonproduction and Production Workers in Canadian Manufacturing
The 1980s and 1990s have seen a rising share of skilled labour in total employment in the manufacturing sector of Canada. At the same time, the wage premium for skilled workers has increased, thereby increasing the inequality between skilled and unskilled workers. There is a disagreement about the causes of these changes. Several hypotheses have been offered to explain them-increased international competition, changes in the relative supply of more-skilled versus less-skilled workers, and skilled-augmenting technological change. This paper analyzes the nature, pattern and causes of the shifts in the composition of employment in manufacturing. The paper describes the composition of employment in manufacturing. It focuses on the direction and magnitude of shifts in the proportion of nonproduction workers employed within manufacturing and across sectors within manufacturing. It also investigates the extent to which wage differentials between nonproduction and production workers have widened in the 1980s. In addition, it assesses the extent to which these changes are associated with trade and technology use. The results indicate that the rising wage differentials are associated with both increased trade intensity and the types of technologies that are being used in the plant.
|Date of creation:||06 May 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.statcan.gc.ca
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard B. Freeman & Karen Needels, 1991.
"Skill Differentials in Canada in an Era of Rising Labor Market Inequality,"
NBER Working Papers
3827, National Bureau of Economic Research, Inc.
- Richard B. Freeman & Karen Needels, 1993. "Skill Differentials in Canada in an Era of Rising Labor Market Inequality," NBER Chapters, in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 45-68 National Bureau of Economic Research, Inc.
- Charles Brown & James L. Medoff, 1989.
"The Employer Size-Wage Effect,"
NBER Working Papers
2870, National Bureau of Economic Research, Inc.
- Picot, Garnett & Baldwin, John R., 1994.
"Employment Generation by Small Producers in the Canadian Manufacturing Sector,"
Analytical Studies Branch Research Paper Series
1994070e, Statistics Canada, Analytical Studies Branch.
- Baldwin, John & Picot, Garnett, 1995. " Employment Generation by Small Producers in the Canadian Manufacturing Sector," Small Business Economics, Springer, vol. 7(4), pages 317-31, August.
- Jeffrey D. Sachs & Howard J. Shatz, 1994. "Trade and Jobs in Manufacturing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 1-84.
- Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
- Wood Júnior, Thomaz, 1995. "Workers," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 35(2), January.
- Alan B. Krueger, 1991.
"How Computers Have Changed the Wage Structure: Evidence From Microdata, 1984-1989,"
NBER Working Papers
3858, National Bureau of Economic Research, Inc.
- Krueger, Alan B, 1993. "How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989," The Quarterly Journal of Economics, MIT Press, vol. 108(1), pages 33-60, February.
- Johnson, Joanne & Baldwin, John R. & Gray, Tara, 1996. "Technology-induced Wage Premia in Canadian Manufacturing Plants During the 1980s," Analytical Studies Branch Research Paper Series 1996092e, Statistics Canada, Analytical Studies Branch.
- Jacob Mincer, 1991. "Human Capital, Technology, and the Wage Structure: What Do Time Series Show?," NBER Working Papers 3581, National Bureau of Economic Research, Inc.
- Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
- Dunne, Timothy & Schmitz, James A, Jr, 1995. "Wages, Employment Structure and Employer Size-Wage Premia: Their Relationship to Advanced-Technology Usage at US Manufacturing Establishments," Economica, London School of Economics and Political Science, vol. 62(245), pages 89-107, February.
- J. David Richardson, 1995. "Income Inequality and Trade: How to Think, What to Conclude," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 33-55, Summer.
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Murphy, Kevin M & Welch, Finis, 1992. "The Structure of Wages," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 285-326, February.
- Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
- Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
- Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, March.
- Edward E. Leamer, 1994. "Trade, Wages and Revolving Door Ideas," NBER Working Papers 4716, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:stc:stcp3e:1998098e. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Brown)
If references are entirely missing, you can add them using this form.