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Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms

Audra Bowlus (), Émilien Gouin-Bonenfant, Huju Liu, Lance Lochner () and Youngmin Park

Staff Working Papers from Bank of Canada

Abstract: This paper studies the evolution of individual earnings inequality and dynamics in Canada from 1983 to 2016 using tax files and administrative records. Linking these individuals to their employers (and rich administrative records on firms) beginning in 2001, it also documents the relationship between the earnings dynamics of workers and the size and growth of their employers. It highlights three main patterns over this period: First, with a few exceptions (sharp increase in top 1% and declining gender gap), Canada experienced relatively modest changes in overall earnings inequality, volatility, and mobility between 1983 and 2016. Second, there is considerable variability in earnings inequality and volatility over the business cycle. Third, the earnings dynamics of individuals are strongly related to the size and employment growth of their employers.

Keywords: Econometric and statistical methods; Firm dynamics; Labour markets; Potential output; Productivity (search for similar items in EconPapers)
JEL-codes: D22 D31 E24 J24 J31 J63 (search for similar items in EconPapers)
Pages: 73 pages
Date: 2021-04
New Economics Papers: this item is included in nep-bec, nep-lma, nep-mac and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:21-20

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