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The Evolution of Hourly Compensation in Canada between 1980 and 2010

Author

Listed:
  • Duclos, Jean-Yves

    (Université Laval)

  • Pellerin, Mathieu

    (Université Laval)

Abstract

We consider changes in the distribution of hourly compensation in Canada using confidential census data and the recent National Household Survey over the last three decades. We find that the coefficient of variation of wages among full-time workers has almost doubled between 1980 and 2010. The rapid growth of the 99.9th percentile is the main driver of that increase. Changes in the composition of the workforce explain less than 25% of the rise in wage inequality. However, composition changes explain most of the increase in average hourly compensation over those three decades, while wages stagnate within skill groups.

Suggested Citation

  • Duclos, Jean-Yves & Pellerin, Mathieu, 2015. "The Evolution of Hourly Compensation in Canada between 1980 and 2010," IZA Discussion Papers 8917, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8917
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    File URL: https://docs.iza.org/dp8917.pdf
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    References listed on IDEAS

    as
    1. Michael R. Veall, 2012. "Top income shares in Canada: recent trends and policy implications," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1247-1272, November.
    2. Michael R. Veall, 2010. "2B or Not 2B? What Should Have Happened with the Canadian Long Form Census? What Should Happen Now?," Canadian Public Policy, University of Toronto Press, vol. 36(3), pages 395-399, September.
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    More about this item

    Keywords

    Canada; inequality; wage distribution; composition effects;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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