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Changes in Wage Inequality in Canada: An Interprovincial Perspective

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  • Fortin, Nicole M.
  • Lemieux, Thomas

Abstract

This paper uses the Canadian Labour Force Survey to understand why the level and dispersion of wages have evolved differently across provinces from 1997 to 2013. The starker interprovincial differences are the much faster increase in the level of wages and decline in wage dispersion in Newfoundland, Saskatchewan, and Alberta. This is accounted for by the growth in the extractive resources sectors, which benefited less educated and younger workers the most. We also find that increases in minimum wages since 2005 are the main reason why wages at the very bottom grew more than in the middle of the distribution.

Suggested Citation

  • Fortin, Nicole M. & Lemieux, Thomas, 2015. "Changes in Wage Inequality in Canada: An Interprovincial Perspective," CLSSRN working papers clsrn_admin-2015-3, Vancouver School of Economics, revised 25 Jan 2015.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2015-3
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    References listed on IDEAS

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    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
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    5. Nicole Fortin & David A. Green & Thomas Lemieux & Kevin Milligan & W. Craig Riddell, 2012. "Canadian Inequality: Recent Developments and Policy Options," Canadian Public Policy, University of Toronto Press, vol. 38(2), pages 121-145, June.
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    More about this item

    Keywords

    wage inequality; provinces; minimum wage; extractive resources industries;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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