1,721,048 research outputs found
Canadian Labour Market Performance in Perspective: Presidential Address to the Canadian Economics Association
Get PDFMeasuring Unemployment and Structural Unemployment
Get PDFThis paper surveys recent research on how to measure labour market activities such as unemployment and labour force participation. The conventional approach to distinguishing between unemployment and non-participation is to use a priori reasoning and self-reported survey responses about current activities, specifically availability for work and job search. In contrast, the research surveyed here employs evidence on the subsequent consequences of current activities, in particular on transitions among labour force states. This general approach appears to be a promising method for bringing evidence to bear on these difficult measurement issues.
The Causal Effects of Education on Adaptability
Get PDFThis study investigates the causal effects of education on individuals’ adaptability to employment shocks. Specifically, we assess the extent to which education influences re-employment success for unemployed workers. We also examine the impact of education on job search intensity, one potential mechanism through which education may increase the probability of re-employment following unemployment. Given that the positive correlation between education and adaptability is likely to be confounded by the endogeneity of education, we make use of data on compulsory schooling laws to create instrumental variables to assess the causal effects of education on adaptability. Based on data from the Canadian Census and the Labour Force Survey, we find that education both significantly improves re-employment opportunities and exerts significant positive impacts on job search intensity for the unemployed.Education, Human Capital, Adaptability, Displaced Workers, Unemployment, Job Search, Casual Effects, Compulsory Schooling Laws
Education and Skills: An Assessment of Recent Canadian Experience
Get PDFThe skills issue is currently at or near the top of the federal government’s policy agenda, given its importance for harnessing the benefits of technological advances. Policy initiatives in the area should be premised on an accurate assessment of Canada’s recent experience in education and skill formation. In his paper, W. Craig Riddell attempts such an assessment. He provides a careful examination of trends in education expenditures and outcomes in Canada compared to other countries, looks at trends in the incidence of education, and analyzes the link between education and labour market success. Riddell’s overall assessment of Canada’s record in education and skills is quite positive. He finds that relative to other OECD countries, Canada ranks near the top in terms of expenditure per student and share of GDP devoted to elementary, secondary and post-secondary education; that Canada’s population is well educated by international standards, with the highest proportion of the population with non-university, post-secondary education in the OECD; and that the country’s literacy skills, particularly for the young and well educated, are above average among the G7 countries that participated in the International Adult Literacy Survey. One possible weakness he identifies is the relatively low student achievement in mathematics among the G7 countries that participated in the standardized tests. This suggests Canada may not be obtaining good “value for money” from its relatively high expenditure on education. Riddell notes that the conventional estimates of the return to education appear downward biased so that the causal effect of education on earnings may be higher than previously believed. Evidence suggests that the marginal return to incremental investment in education exceeds the average from previous investments and that there is no evidence that investments in schooling are running into diminishing returns. Riddell concludes that investments in human capital remain an important potential source of economic growth and equality of opportunity.Education, Human Capital, Skills, Literacy, Numeracy, Canada, Post-secondary, Postsecondary, Post Secondary, Earnings, Return To Education
Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States
Get PDFUnionization and Wage Inequality: A Comparative Study of the U.S, the U.K., and Canada
Get PDFThis paper presents a comparative analysis of the link between unionization and wage inequality in the U.S., the U.K., and Canada. Our main motivation is to see whether unionization can account for differences and trends in wage inequality in industrialized countries. We focus on the U.S., the U.K., and Canada because the institutional arrangements governing unionization and collective bargaining are relatively similar in these three countries. The three countries also share large non-union sectors that can be used as a comparison group for the union sector. Using comparable micro data for the last two decades, we find that unions have remarkably similar qualitative impacts in all three countries. In particular, unions tend to systematically reduce wage inequality among men, but have little impact on wage inequality for women. We conclude that unionization helps explain a sizable share of cross-country differences in male wage inequality among the three countries. We also conclude that de-unionization explains a substantial part of the growth in male wage inequality in the U.K. and the U.S. since the early 1980s.
The Impact of Education on Unemployment Incidence and Re-employment Success: Evidence from the U.S. Labour Market
Get PDFThis study investigates the causal effects of education on individuals’ transitions between employment and unemployment, with particular focus on the extent to which education improves re-employment outcomes among unemployed workers. Given that positive correlations between education and labour force transitions are likely to be confounded by the endogeneity of education, we make use of data on compulsory schooling laws and child labour laws as well as conscription risk in the Vietnam War period to create instrumental variables to identify the causal relationships. Results indicate that education significantly increases re-employment rates of the unemployed. Particularly large impacts are found in the neighborhoods of 12 and 16 years of schooling. Evidence on the impact of formal schooling on unemployment incidence is mixed.child labour laws, compulsory schooling laws, causal effects, unemployment, labour market transitions, education, Vietnam War draft
Literacy, Numeracy and Labour Market Outcomes in Canada
Get PDFMost research on the contribution of human capital to economic growth and its role in the distribution of income uses indirect measures of human capital such as educational attainment and work experience. Such measures are arguably inputs into the production of human capital in the form of skills, competencies and knowledge. This study uses Canadian data from the international Adult Literacy Survey to analyse the role of directly observed skills -- specifically, prose, document and quantitative literacy -- on individual labour market earnings. The contributions of unobserved skills are taken into account using input measures (education and experience). We find that literacy skills have a large and statistically significant causal effect on earnings. As much as one-third of the return to education may be due to the combined effects of education on literacy and of literacy skills on earnings. In contrast, very little of the return to labour market experience is associated with the combined effects of experience on literacy and literacy skills on earnings.
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