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The disintegrating Canadian labour market? The extent of the market then and now
Patrick J. Coe 1 , J.C. Herbert Emery 2
  1 Department of Economics, Carleton University
  2 Department of Economics, University of Calgary

We thank Marc Prud'homme of Statistics Canada for supplying us with some of the data used in this paper. We also thank two anonymous referees for their comments and suggestions. This paper has also benefited from the comments of Gregor Smith, Thanasis Stengos, Stuart Wilson, seminar participants at the Universities of Adelaide, Guelph, and Western Ontario and participants in the February 2000 Queen's Economic History Workshop, the Canadian Economics Association Annual Meeting held in Montreal in June 2001, and the Canadian Network for Economic History Conference held in Montreal in April 2002. Email: patrick_coe@carleton.ca

Copyright Canadian Economics Association, 2004

ABSTRACT

Abstract. Analysis of real wages for three occupations in 13 Canadian cities for 1901–50 suggests Canada had a national labour market at least until 1950. However, analysis of real wages for 10 Canadian cities for 1971–2000 yields little evidence favouring integration of Canada's regional labour markets. The apparent lack of labour market integration reflects a weakness of an approach that assumes markets are in equilibrium. Unemployment rates after 1970 suggest that some regional markets may be characterized by excess labour supply. Analysis of relative provincial unemployment rates yields evidence consistent with local labour force adjustment to changing labour market conditions. JEL classification: E24, J61

ABSTRACT

Le marché du travail en désintégration au Canada?L'étendue du marché alors et maintenant. Les auteurs analysent les salaires réels pour trois occupations dans 13 villes canadiennes au cours de la période 1901–50 et suggèrent que le Canada a joui d'un marché du travail qui était national tout au moins jusqu'à 1950. Toutefois, l'analyse des salaires réels dans 10 villes canadiennes au cours de la période 1971–2000 ne fournit pas de résultats supportant l'idée d'intégration des marchés régionaux du travail. On suggère que le manque apparent d'intégration du marché du travail est l'effet d'écho d'une approche qui présume que les marchés sont en équilibre. La période de l'après 1970 en est une où les taux de chômage suggèrent plutôt que certains marchés régionaux peuvent être raisonnablement caractérisés comme définis par une offre excédentaire de travail. Une analyse des taux de chômage provinciaux relatifs révèle que la force de travail locale s'ajuste aux conditions changeantes du marché du travail.


Received: 28 February 2002; Accepted: 09 September 2002;
DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/j.0008-4085.2004.00252.x About DOI

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