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Implications of Technology and Imports for Employment and Wages in Canada

Author

Listed:
  • C. Lee, Frank

    (Government of Canada)

Abstract

This paper analyzes the net effects of technology and import competition on employment, wages and wage inequality in the Canadian manufacturing sector over the 1970-1990 period by estimating reduced form employment and wage equations. The analysis uses non-production and production workers to distinguish between two types of workers. For each group, person-hours worked, the level of employment and the hourly labor compensation by industry are examined. The major findings for the study are as follows: (1) the growth of employment and real hourly labor compensation in the Canadian manufacturing sector is positively related to technical progress and to the price of imports; (2) the relative employment of non-production to production workers is negatively related to technical progress, while the relative real hourly labor compensation of non-production to production workers is positively associated with technical progress; (3) the relative employment of non-production to production workers is negatively related to the price of imports, and the relative real hourly labor compensation is positively associated with the price of imports.

Suggested Citation

  • C. Lee, Frank, 1999. "Implications of Technology and Imports for Employment and Wages in Canada," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 14, pages 296-325.
    • Handle: RePEc:ris:integr:0106
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    More about this item

    Keywords

    technology; import; wages; employment; Canada;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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