Economy-Wide Spillovers from Booms: Long-Distance Commuting and the Spread of Wage Effects

David Green, René Morissette, Benjamin Sand () and Iain Snoddy

Journal of Labor Economics, 2019, vol. 37, issue S2, S643 - S687

Abstract: Since 2000, US real average wages stagnated or declined while Canadian wages increased. We investigate the role of the Canadian resource boom in explaining this difference. We focus on wage spillovers to nonresource workers through a bargaining channel. We find that long-distance commuting to resource regions had substantial spillover effects on noncommuters in sending regions. Through spillovers, we account for 49% of the increase in the real mean wage in Canada between 2000 and 2012. We also find long-distance commuting effects in the United States. We conclude that long-distance commuting integrates regions, spreading benefits and costs of booms across the economy.

Date: 2019
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Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Economy Wide Spillovers From Booms: Long Distance Commuting and the Spread of Wage Effects (2017)
Chapter: Economy-Wide Spillovers from Booms: Long-Distance Commuting and the Spread of Wage Effects (2016)
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