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

Ross Finnie

Analytical Studies Branch Research Paper Series from Statistics Canada, Analytical Studies Branch

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.

Keywords: Labour; Labour mobility; turnover and work absences; Mobility and migration; Population and demography; Wages; salaries and other earnings (search for similar items in EconPapers)
Date: 2001-10-25
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Citations: View citations in EconPapers (5)

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