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The Effects of Inter-provincial Mobility on Individuals' Earnings: Panel Model Estimates for Canada

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  • Finnie, Ross

Abstract

This paper presents the findings of an empirical investigation of the effects of inter-provincial migration on individuals' earnings based on the newly available Longitudinal Administrative Database (LAD). The main results are based on a difference model which estimates the effects of mobility on (log) earnings which implicitly controls for initial earnings levels and other fixed effects, as well as other influences captured by the regressors included in the models. Inter-provincial mobility is found to be associated with statistically significant and in many cases quantitatively substantial changes in individuals' earnings, with these effects varying by age, sex, and province of origin. Pre- and post-move earnings profiles are also analysed, offering support for the validity of the difference model approach and indicating that movers are quickly integrated into local labour markets after their moves. Implications are discussed and possible directions for future research are suggested.

Suggested Citation

  • Finnie, Ross, 2001. "The Effects of Inter-provincial Mobility on Individuals' Earnings: Panel Model Estimates for Canada," Analytical Studies Branch Research Paper Series 2001163e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2001163e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2001163
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    References listed on IDEAS

    as
    1. Finnie, R. & Gray, D., 1998. "The Dynamics of the Earnings Distribution in Canada: An Econometric Analysis," Working Papers 9803e, University of Ottawa, Department of Economics.
    2. Shaw, R Paul, 1986. "Fiscal versus Traditional Market Variables in Canadian Migration," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 648-666, June.
    3. Lars Osberg & Daniel V. Gordon & Zhengxi Lin, 1994. "Interregional Migration and Interindustry Labour Mobility in Canada: A Simultaneous Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 58-80, February.
    4. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    5. Chris Robinson & Nigel Tomes, 1982. "Self-Selection and Interprovincial Migration in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 15(3), pages 474-502, August.
    6. Thomas J. Courchene, 1970. "Interprovincial Migration and Economic Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 3(4), pages 550-576, November.
    7. Thomas J. Courchene, 1970. "An Analysis of Canadian Regional Economic Characteristics with Special Emphasis on Regional Unemployment Rates," University of Western Ontario, Departmental Research Report Series 7015, University of Western Ontario, Department of Economics.
    8. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-144, February.
    9. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
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    Cited by:

    1. Andrew Sharpe & Jean-Francois Arsenault & Daniel Ershov, 2007. "The Impact of Interprovincial Migration on Aggregate Output and Labour Productivity in Canada, 1987-2006," International Productivity Monitor, Centre for the Study of Living Standards, vol. 15, pages 25-40, Fall.
    2. Wildasin, David, 2003. "Fiscal Policy, Human Capital, and Canada-US Labor Market Integration," IZA Discussion Papers 889, Institute of Labor Economics (IZA).
    3. Andrew Sharpe, 2007. "Three Policies to Improve Productivity Growth in Canada," CSLS Research Reports 2007-05, Centre for the Study of Living Standards.
    4. Robert A. Nakosteen & Olle Westerlund & Michael Zimmer, 2008. "Migration And Self‐Selection: Measured Earnings And Latent Characteristics," Journal of Regional Science, Wiley Blackwell, vol. 48(4), pages 769-788, October.

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