Closing the 49th Parallel: An Unexplored Episode in Canadian Economic and Political History
We draw attention to, and begin to consider the implications of the severe restrictions on emigration by Canadians to the United States introduced under the U.S. Immigration Act of 1965. These restrictions came into effect in 1968 and lasted until mobility began to increase under the free trade agreements in the early 1990's. This is an unusual episode in Canadian history, one whose implications for public policy have received little attention. The near closing of the border during this period likely led to a decrease in the elasticity of labour supply in Canada. We derive the implications of such a change in a competitive political model where the political costs and benefits of levying taxes on different activities are distinguished. Increased reliance on, and changes in the structure of, labour income taxes, and an increase in the size of the public sector are predicted. We show that these predictions are consistent with what occurred over the two decades after the near closing of the U.S. border.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: Economic Policy Research Institute, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2|
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/epri_workingpapers.html
References listed on IDEAS
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.:
- Aidt, T.S. & Jense , P.S., 2007.
"Tax Structure, Size of Government, and the Extension of the Voting Franchise in Western Europe, 1860-1938,"
Cambridge Working Papers in Economics
0715, Faculty of Economics, University of Cambridge.
- Toke Aidt & Peter Jensen, 2009. "Tax structure, size of government, and the extension of the voting franchise in Western Europe, 1860–1938," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(3), pages 362-394, June.
- Hettich,Walter & Winer,Stanley L., 2005.
"Democratic Choice and Taxation,"
Cambridge University Press, number 9780521021807, December.
- Emmanuel Saez & Michael R. Veall, 2005. "The Evolution of High Incomes in Northern America: Lessons from Canadian Evidence," American Economic Review, American Economic Association, vol. 95(3), pages 831-849, June.
- Tridimas, George & Winer, Stanley L., 2005. "The political economy of government size," European Journal of Political Economy, Elsevier, vol. 21(3), pages 643-666, September.
- Wildasin, David, 2003.
"Fiscal Policy, Human Capital, and Canada-US Labor Market Integration,"
IZA Discussion Papers
889, Institute for the Study of Labor (IZA).
- David E. Wildasin, 2003. "Fiscal Policy, Human Capital, and Canada-US Labor Market Integration," Public Economics 0309006, EconWPA.
- Dennis Mueller, 1998. "Constitutional Constraints on Governments in a Global Economy," Constitutional Political Economy, Springer, vol. 9(3), pages 171-186, September.
- MacKinnon, James G, 1996.
"Numerical Distribution Functions for Unit Root and Cointegration Tests,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 11(6), pages 601-18, Nov.-Dec..
- James G. MacKinnon, 1995. "Numerical Distribution Functions for Unit Root and Cointegration Tests," Working Papers 918, Queen's University, Department of Economics.
- Ferris, J. Stephen & Park, Soo-Bin & Winer, Stanley L., 2008.
"Studying the role of political competition in the evolution of government size over long horizons,"
POLIS Working Papers
111, Institute of Public Policy and Public Choice - POLIS.
- J. Ferris & Soo-Bin Park & Stanley Winer, 2008. "Studying the role of political competition in the evolution of government size over long horizons," Public Choice, Springer, vol. 137(1), pages 369-401, October.
- Ferris, J.S. & Park, S. & Winer, S.L., 2007. "Studying the Role of Political Competition in the Evolution of Government Size Over Long Horizons," Cambridge Working Papers in Economics 0774, Faculty of Economics, University of Cambridge.
- Saikkonen, Pentti, 1991. "Asymptotically Efficient Estimation of Cointegration Regressions," Econometric Theory, Cambridge University Press, vol. 7(01), pages 1-21, March.
- Winer, Stanley L. & Ferris, J. Stephen, 2008. "Searching for Keynesianism," European Journal of Political Economy, Elsevier, vol. 24(2), pages 294-316, June.
- Stanley Winer & Michael Tofias & Bernard Grofman & John Aldrich, 2008. "Trending economic factors and the structure of Congress in the growth of government, 1930–2002," Public Choice, Springer, vol. 135(3), pages 415-448, June.
- James B. Davies & Junsen Zhang, 1996. "Measuring Marginal Income Tax Rates for Individuals in Canada: Averages and Distributions over Time," Canadian Journal of Economics, Canadian Economics Association, vol. 29(4), pages 959-75, November.
When requesting a correction, please mention this item's handle: RePEc:uwo:epuwoc:20083. 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: ()
If references are entirely missing, you can add them using this form.