Implications of Technology and Imports for Employment and Wages in Canada

Frank C. Lee ()
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Frank C. Lee: Government of Canada, Postal: Department of Industry. Government of Canada, 235, Queen St, 536G， Ottawa, Canada KlA OH5

Journal of Economic Integration, 1999, vol. 14, 296-325

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.

Keywords: technology; import; wages; employment; Canada (search for similar items in EconPapers)
JEL-codes: F14 J23 J31 (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0106

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