Changes in the Distribution of Wages in Canada, 1981-1992

David H. Richardson

Canadian Journal of Economics, 1997, vol. 30, issue 3, 622-43

Abstract: This article uses microdata to study the changes in the distribution of weekly wages in Canada from 1981 to 1992. Changes in the distribution are analyzed using Lorenz curves and eight different univariate measures of inequality. Evidence is presented that indicates that inequality is anticyclical, increasing during recessions and falling during business cycle expansions. Moreover, after changes in the cycle are accounted for, there has been a clear upward trend in wage inequality. Comparisons between the Canadian and the U.S. distributions show that wage inequality was less pronounced in Canada than it was in the United States in the 1980s and was increasing in Canada relative to the United States from 1989 to 1992.

Date: 1997
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