Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms

Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms
Author: Audra Bowlus
Publisher:
Total Pages: 0
Release: 2021
Genre:
ISBN:

This paper studies the evolution of individual earnings inequality and dynamics in Canada from 1983 to 2016 using tax files and administrative records. Linking these individuals to their employers (and rich administrative records on firms) beginning in 2001, it also documents the relationship between the earnings dynamics of workers and the size and growth of their employers. It highlights three main patterns over this period: First, with a few exceptions (sharp increase in top 1% and declining gender gap), Canada has experienced relatively modest changes in overall earnings inequality, volatility, and mobility between 1983 and 2016. Second, there is considerable variability in earnings inequality and volatility over the business cycle. Third, the earnings dynamics of individuals are strongly related to the size and employment growth of their employers.

Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms

Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms
Author: Audra Bowlus
Publisher:
Total Pages:
Release: 2021
Genre:
ISBN:

This paper studies the evolution of individual earnings inequality and dynamics in Canada from 1983 to 2016 using tax files and administrative records. Linking these individuals to their employers (and rich administrative records on firms) beginning in 2001, it also documents the relationship between the earnings dynamics of workers and the size and growth of their employers. It highlights three main patterns over this period: First, with a few exceptions (sharp increase in top 1% and declining gender gap), Canada has experienced relatively modest changes in overall earnings inequality, volatility, and mobility between 1983 and 2016. Second, there is considerable variability in earnings inequality and volatility over the business cycle. Third, the earnings dynamics of individuals are strongly related to the size and employment growth of their employers.

Firms and the Decline in Earnings Inequality in Brazil

Firms and the Decline in Earnings Inequality in Brazil
Author: Jorge Alvarez
Publisher: International Monetary Fund
Total Pages: 59
Release: 2017-12-14
Genre: Business & Economics
ISBN: 1484333039

We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.

Earnings Dynamics and Inequality Among Canadian Men, 1976-1992

Earnings Dynamics and Inequality Among Canadian Men, 1976-1992
Author: Michael Baker
Publisher:
Total Pages: 88
Release: 1999
Genre: Economic surveys
ISBN:

Several recent studies have found that earnings inequality in Canada has grown considerably since the late 1970's. Using an extraordinary data base drawn from longitudinal income tax records, we decompose this growth in earnings inequality into its persistent and transitory components. We find that the growth in earnings inequality reflects both an increase in long-run inequality and an increase in earnings instability. The large size of our earnings panel allows us to estimate and test richer models of earnings dynamics than could be supported by the relatively small panel surveys used in U.S. research. The Canadian data strongly reject several restrictions commonly imposed in the U.S. literature, and they also suggest that imposing these evidently false restrictions may lead to distorted inferences about earnings dynamics and inequality trends.

Why Has Inequality in Weekly Earnings Increased in Canada?

Why Has Inequality in Weekly Earnings Increased in Canada?
Author: René Morissette
Publisher:
Total Pages: 70
Release: 1995
Genre: Business & Economics
ISBN:

Inequality in weekly earnings increased in Canada in the 1980s, in conjunction with a drop in real hourly wages of young workers, a fall in the percentage of employees working 35-40 hours per week in their main job, a rise in the fraction of employees working 50 hours per week or more, and a growing tendency for highly paid workers to work long workweeks. The paper examines the role of weekly hours of work and the correlation between hourly wage rates and weekly hours in explaining the rise of inequality in weekly earnings in Canada over the last decade. It also documents changes in the distribution of hourly wages, the growth in the dispersion of weekly hours of work, and the increase in the correlation between hourly wages and weekly hours. The paper concludes with a review of the possible factors behind the rise in weekly earnings inequality in Canada.

Income Inequality

Income Inequality
Author: David Alan Green
Publisher: Art of the State
Total Pages: 0
Release: 2016
Genre: Political Science
ISBN: 9780886453299

"Rising income inequality has been at the forefront of public debate in Canada in recent years, yet there is still much to be learned about the economic forces driving the distribution of earnings and income in this country and how they might evolve in coming years. With research showing that the tax-and-transfer system is less effective than in the past in counteracting growing income disparities, the need for policy-makers to understand the factors at play is all the more urgent. The Institute for Research on Public Policy, in collaboration with the Canadian Labour Market and Skills Researcher Network, has gathered some of the country’s leading experts to provide new evidence on the causes and effects of rising income inequality in Canada and to consider the role of policy. Their research and analysis constitutes a comprehensive review of Canadian inequality trends in recent decades, including changing earnings and income dynamics among middle--class and top earners, wage and job polarization across provinces, and persistent poverty among vulnerable groups. The authors also examine the changing role of education and unionization, as well as the complex interplay of redistributive policies and politics, in order to propose new directions for policy. Amid growing anxieties about the economic prospects of the middle class, Income Inequality: The Canadian Story will inform the public discourse on this issue of central concern for all Canadians."--Publisher's website.

Income Inequality in Canada

Income Inequality in Canada
Author: Sarah Burkinshaw
Publisher:
Total Pages: 0
Release: 2022
Genre: Income distribution
ISBN:

Concerns over rising inequality have heightened in the years following the 2007-09 global financial crisis and, more recently, with the COVID-19 pandemic. This staff discussion paper reviews the historical facts regarding income inequality in Canada, comparing Canada with the United States and reviewing briefly what the literature says about the most likely drivers of the rise in inequality. Data show that income inequality in Canada increased substantially during the 1980s and first half of the 1990s but has been relatively stable over the past 25 years. This increase was felt mainly by low-income earners and younger people, while older people benefited from higher retirement income. Income inequality in the United States has been higher than in Canada for the last four decades, with the main differences observed at the high end of the income distribution. These facts give rise to a number of important questions for future research, including the role (if any) of monetary policy in driving changes in income inequality and that of the monetary policy framework and decisions in reflecting the observed inequality.