Explaining Canadian Regional Wage Relativities

Ian G. Cahill and Michael Gager
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Ian G. Cahill: Cahill Software
Michael Gager: Treasury Board Secretariat, Government of Canada

The Review of Regional Studies, 2014, vol. 44, issue 2, 125-152

Abstract: We explore the source of Canadian regional wage differences attempting to measure the extent to which they are driven by differences in human capital and industrial structures. An econometric model of wage determination including variables intended to capture these effects is estimated. We conduct sensitivity analyses by estimating the model with various sets of variables. A striking finding is that differences in the wages between urban areas within a province or region can be explained by a human capital model augmented with controls for occupation and industry, while the differences between the broad regions defined by provincial boundaries cannot.

Keywords: regional; wage differentials (search for similar items in EconPapers)
JEL-codes: J31 R11 R12 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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