 U.S.-Canadian Unemployment and Wage Differences Among Young Low-Skilled Males in the 1980sAudra Bowlus () Canadian Journal of Economics, 1998, vol. 31, issue 2, 437-464 Abstract: During the mid 1980s young, low-skilled adults in Canada were much more likely to be out of work than their U.S. counterparts. The unemployment rate gap for this cohort was 7 percentage points. At the same time wage inequality was higher in the United States. Using panel data from the U.S. National Longitudinal Survey of Youth and the Canadian Labour Market Activity Survey, in this study a general equilibrium search model of the labor market is employed to identify structural differences contributing to these gaps. The results reveal that both wage and unemployment differences are driven by a higher job destruction/separation rate in Canada and higher job offer arrival rates in the United States. In general, the model characterizes the U.S. labor market as having less search frictions than that of Canada. That is, Canadian firms are found to have more monopsony power than their U.S. counterparts. Date: 1998 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:31:y:1998:i:2:p:437-464 Ordering information: This journal article can be ordered from Access Statistics for this article Canadian Journal of Economics is currently edited by Zhiqi Chen More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC. |
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