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Changes in the Distribution of Wages in Canada, 1981-1992

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  • David H. Richardson

Abstract

This article uses microdata to study the changes in the distribution of weekly wages in Canada from 1981 to 1992. Changes in the distribution are analyzed using Lorenz curves and eight different univariate measures of inequality. Evidence is presented that indicates that inequality is anticyclical, increasing during recessions and falling during business cycle expansions. Moreover, after changes in the cycle are accounted for, there has been a clear upward trend in wage inequality. Comparisons between the Canadian and the U.S. distributions show that wage inequality was less pronounced in Canada than it was in the United States in the 1980s and was increasing in Canada relative to the United States from 1989 to 1992.

Suggested Citation

  • David H. Richardson, 1997. "Changes in the Distribution of Wages in Canada, 1981-1992," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 622-643, August.
    • Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:622-43
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    Cited by:

    1. Charles M. Beach & David Gray & Ross Finnie, 2006. "Long-run Inequality And Annual Instability Of Men's And Women's Earnings In Canada," Working Paper 1116, Economics Department, Queen's University.
    2. Gray, David & Finnie, Ross & Beach, Charles M., 2006. "Sommaire de : L'effet des conditions macroeconomiques sur l'instabilite et l'inegalite a long terme des gains des travailleurs au Canada," Direction des études analytiques : documents de recherche 2006269f, Statistics Canada, Direction des études analytiques.

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