Local Labor Markets in Canada and the United States

60 Pages Posted: 1 Apr 2019 Last revised: 1 Apr 2022

See all articles by David Albouy

David Albouy

University of Illinois at Urbana-Champaign

Alex Chernoff

Government of Canada - Bank of Canada

Chandler Lutz

Securities and Exchange Commission (SEC)

Casey Warman

Dalhousie University

Date Written: March 2019

Abstract

We examine local labor markets in the U.S. and Canada from 1990 to 2011 using comparable household and business data. Wage levels and inequality rise with city population in both countries, albeit less in Canada. Neither country saw wage levels converge despite contrasting migration patterns from/to high-wage areas. Local labor demand shifts raise nominal wages similarly, although in Canada they attract immigrant and highly-skilled workers more, while raising housing costs less. Chinese import competition had a weaker negative impact on manufacturing employment in Canada. These results are consistent with Canada's more redistributive transfer system and larger, more-educated immigrant workforce.

Suggested Citation

Albouy, David and Chernoff, Alex and Lutz, Chandler and Warman, Casey, Local Labor Markets in Canada and the United States (March 2019). NBER Working Paper No. w25709, Available at SSRN: https://ssrn.com/abstract=3363447

David Albouy (Contact Author)

University of Illinois at Urbana-Champaign ( email )

Alex Chernoff

Government of Canada - Bank of Canada

234 Wellington Street
Ontario, K1A 0G9
Canada

Chandler Lutz

Securities and Exchange Commission (SEC) ( email )

450 Fifth Street, NW
Washington, DC 20549-1105
United States

Casey Warman

Dalhousie University ( email )

Halifax, Nova Scotia B3H 3J5
Canada

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