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Distributional Gains Of Near Higher Earners

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  • Charles Beach

Abstract

This paper looks at changes in employment and relative wages of near higher earnings (NHE) workers between middle-class (MC) and higher earners (HE) in Canada over 2000-2015. An approach is also forwarded for evaluating these changes in terms of underlying demand and supply factors. It is found that the NHE behaves as a transition group between quite different patterns of change of the MC and HE groups, and that these changes have been recently attenuating. The MC group experienced a downward shift in employment demand, the HE group an upward shift in demand, and the NHE group an upward shift in supply of workers.

Suggested Citation

  • Charles Beach, 2018. "Distributional Gains Of Near Higher Earners," Working Paper 1398, Economics Department, Queen's University.
  • Handle: RePEc:qed:wpaper:1398
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1398.pdf
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    References listed on IDEAS

    as
    1. David A. Green & Benjamin M. Sand, 2015. "Has the Canadian labour market polarized?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 612-646, May.
    2. Daron Acemoglu & David Autor & David Dorn & Gordon H. Hanson & Brendan Price, 2016. "Import Competition and the Great US Employment Sag of the 2000s," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 141-198.
    3. Paul Beaudry & David A. Green & Benjamin M. Sand, 2016. "The Great Reversal in the Demand for Skill and Cognitive Tasks," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 199-247.
    4. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    5. Nicole M. Fortin & Thomas Lemieux, 2015. "Changes in wage inequality in Canada: An interprovincial perspective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 682-713, May.
    6. Charles M. Beach, 2017. "Have Middle-class Earnings Risen In Canada? A Statistical Inference Approach," Working Paper 1393, Economics Department, Queen's University.
    7. David A. Green, 2015. "Chasing after good jobs. Do they exist and does it matter if they do?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(4), pages 1215-1265, November.
    8. Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1229-1292, November.
    9. Michael Elsby & Bart Hobijn & Ayseful Sahin, 2013. "The Decline of the U.S. Labor Share," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(2 (Fall)), pages 1-63.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    near higher earnings; Income equality; Canadian earnings;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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