Working Hours in Canada and the United States
This paper investigates annual working hours in the United States and Canada over the period 1979 to 2000. The study finds that a working hours gap opened in the 1980s and expanded substantially in the 1990s. It investigates the possibility that labour supply differences, specifically (1) incentives resulting from wage inequality, or (2) differences in the employment engagement of women, youth or older men, explain this working hours gap. The study finds that the stylized facts do not lead one to a supply side explanation. In fact, the sluggish economic growth in Canada relative to the U.S. (reflected in the unemployment rate) during much of the 1990s provides the best explanation for the increase in the hours gap, suggesting that explanations for the divergence in hours worked between the U.S. and Canada should focus on the demand side of the labour market.
|Date of creation:||11 Sep 2003|
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- David Card & John E. DiNardo, 2002.
"Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles,"
Journal of Labor Economics,
University of Chicago Press, vol. 20(4), pages 733-783, October.
- David Card & John E. DiNardo, 2002. "Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," NBER Working Papers 8769, National Bureau of Economic Research, Inc.
- Linda Bell & Richard Freeman, 1994. "Why Do Americans and Germans Work Different Hours?," NBER Working Papers 4808, National Bureau of Economic Research, Inc.
- Drolet, Marie & Morissette, Rene, 1997. "Working More? Working Less? What Do Canadian Workers Prefer?," Analytical Studies Branch Research Paper Series 1997104e, Statistics Canada, Analytical Studies Branch.
- Osberg, L., 1995. "The Equity/Efficiency Trade-Off in Retrospect," Department of Economics at Dalhousie University working papers archive 95-04, Dalhousie, Department of Economics.
- Morissette, Rene, 1995. "Why Has Inequality in Weekly Earnings Increased in Canada?," Analytical Studies Branch Research Paper Series 1995080e, Statistics Canada, Analytical Studies Branch.
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