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Explaining Canadian Regional Wage Relativities

Author

Listed:
  • Ian G. Cahill

    (Cahill Software)

  • Michael Gager

    (Treasury Board Secretariat, Government of Canada)

Abstract

We explore the source of Canadian regional wage differences attempting to measure the extent to which they are driven by differences in human capital and industrial structures. An econometric model of wage determination including variables intended to capture these effects is estimated. We conduct sensitivity analyses by estimating the model with various sets of variables. A striking finding is that differences in the wages between urban areas within a province or region can be explained by a human capital model augmented with controls for occupation and industry, while the differences between the broad regions defined by provincial boundaries cannot.

Suggested Citation

  • Ian G. Cahill & Michael Gager, 2014. "Explaining Canadian Regional Wage Relativities," The Review of Regional Studies, Southern Regional Science Association, vol. 44(2), pages 125-152, Summer.
    • Handle: RePEc:rre:publsh:v44:y:2014:i:2:p:125-152
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    References listed on IDEAS

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    Cited by:

    1. Eva Lajtkepová, 2020. "Distribution of Wages in the Regions of the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 14(2), pages 123-136.

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    More about this item

    Keywords

    regional; wage differentials;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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