Earnings by age or sex

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  • Articles and reports: 11F0019M1999131
    Geography: Canada
    Description:

    Using a regression decomposition approach, we find that, during the 1980s, the growth in the relative educational attainment of older workers has contributed to about one-quarter of the increase in the age-wage gap of men and women. During the 1990s, the age-wage gap increased to a much lesser extent. Changing relative educational attainment accounted for a much greater proportion of the much smaller increase in the gap: almost one-half for males and over three-quarters for women. We also find that, during the 1980s, the expected weekly wages associated with all levels of education fell for younger workers, both for men and women (from 2% to 16%, depending upon education level). Older employees, on the other hand, experienced mixed results. Expected weekly wages rose for some older workers and fell for some others.

    Release date: 1999-03-22

  • Articles and reports: 11F0019M1999130
    Geography: Canada
    Description:

    Several recent studies have found that earnings inequality in Canada has grown considerably since the late 1970's. Using an extraordinary data base drawn from longitudinal income tax records, we decompose this growth in earnings inequality into its persistent and transitory components. We find that the growth in earnings inequality reflects both an increase in long-run inequality and an increase in earnings instability. Our large sample size enables us to estimate and test richer models than could be supported by the relatively small panel surveys used in most previous research on earnings dynamics. For example, we are able to incorporate both heterogeneous earnings growth and a random-walk process in the same model, and we find that both are empirically significant.

    Release date: 1999-02-08

  • Articles and reports: 11F0019M1998113
    Geography: Canada
    Description:

    Our objective is to obtain an accurate estimate of the degree of intergenerational income mobility in Canada. We use income tax information on about 400,000 father-son pairs, and find intergenerational earnings elasticities to be about 0.2. Earnings mobility tends to be slightly greater than income mobility, but non-parametric techniques uncover significant non-linearities in both of these relationships. Intergenerational earnings mobility is greater at the lower end of the income distribution than at the upper end, and displays an inverted V-shape elsewhere. Intergenerational income mobility follows roughly the same pattern, but is much lower at the very top of the income distribution.

    Release date: 1998-10-27

  • Articles and reports: 11F0019M1998112
    Geography: Canada
    Description:

    The study examines the reason for the significant increase in the 'age premium' over the period 1981-94. The age premium refers to the percentage difference in hourly earnings between 'younger' (25-34) and 'older' (45-54) workers. In 1994, the hourly rate of older males was 32.4% higher than that of younger males. The corresponding age premium among females was 15.5%. Over the period 1981-94, the age premium increased by 15.7 percentage points among males and 19.5 percentage points among females.

    Evidence based on analysis of the Survey of Consumer Finances (SCF) public use microdata shows that, while there has been a trend toward non-standard employment, this so far has affected mostly workers under age 25 and cannot explain the rise in the age premium between ages 25-to-34 and 45-to-54, which is the focus of this study.

    A more likely explanation identified by the study is the dramatic improvement in the level of education of older workers over the last 14 years. For example, from 1981 to 1994 the percentage of older male workers with grade 10 education or less declined from 41.9% to 19.6%, while the percentage with post-secondary diplomas and degrees increased from 32.1% to 51.7%. The education level of younger male workers also improved over the same period, but the rate of improvement was smaller and, by 1994, there was virtually no difference in the incidence of post-secondary diplomas and degrees between younger and older workers. Similar trends took place among female workers. Shift-share analysis shows that the narrowing of the education gap between older and younger workers explains 44% of the age premium rise among male employees and 50% of the age premium rise among female employees.

    Release date: 1998-06-29

  • Articles and reports: 11F0019M1998116
    Geography: Canada
    Description:

    The increase in earnings inequality among men in particular in Canada has been well documented. This paper adds to our knowledge of inequality trends by addressing three issues. First, what has happened to earnings inequality among the employed population in the 1990s? We find that earnings inequality and polarization increased little in the population of all workers (men and women combined) between the mid-1980s and mid-1990s. The second question relates to the impact of the changing propensity of Canadians to hold a job on earnings inequality. Put another way, if we focus on the entire population of working age Canadians (those with and without paid employment), what are the inequality trends. We find that earnings inequality among the working age population changed little over the 1980s and 1990s. This analysis incorporates both the influence of the changing employment/population ratio and inequality trends among employed workers on overall earnings inequality among the working age population. But this relative stability in overall earnings inequality since the mid-1980s masks a number of offsetting underlying trends. Some groups of workers are making earnings gains (notably older workers, and women) while others are losing (notably younger workers and men). This paper focuses in particular on the earnings trends among younger workers, and finds that the decline in annual earnings of younger male workers in particular is associated with a decline in real hourly wages.

    Release date: 1998-06-29

  • Articles and reports: 75-001-X19960022890
    Geography: Canada
    Description:

    Contrary to popular belief, the average earnings of men working full year full time seem to decline prior to retirement. This study explores several possible explanations for the unexpected pattern.

    Release date: 1996-06-05

  • Articles and reports: 11F0019M1996089
    Geography: Canada
    Description:

    In this paper we use administrative data associated with the tax system to: (1) document the extent of intergenerational income mobility among Canadian men; and (2) estimate the income disadvantage (in adulthood) of being raised in a low income household. We find that there is considerable intergenerational income mobility in Canada among middle income earners, but that the inheritance of economic status is significant at both the very top and very bottom of the income distribution. About one-third of those in the bottom quartile were raised by fathers who occupied the same position in the income distribution. In fact, the income advantage of someone who had a father in the top decile over someone who had a father in the bottom decile is in the order of 40%. We also discuss some of the policy implications of these findings, as well as some of their limitations and the directions implied for future research.

    Release date: 1996-01-24

  • Articles and reports: 75F0002M1995014
    Description:

    This paper follows up on the initial article in the publication Dynamics of Labour and Income, 1994 Report. The analysis remains the same, but it provides detailed variable groupings, regression and decomposition results which were not originally included.

    Release date: 1995-12-30

  • Articles and reports: 75-001-X19950042457
    Geography: Canada
    Description:

    One of the most radical changes in Canadian society in the past 30 years has been the growth of dual-earner husband-wife families. Using the most recent data on families with employment income, this article examines couples in which wives earn more than their husbands, to see how they differ from the majority of working husband-wife families (those in which the husband is the main breadwinner).

    Release date: 1995-12-05

  • Articles and reports: 11F0019M1994068
    Geography: Canada
    Description:

    This study attempts to compare the earnings of men and women on an equal footing by concentrating on recent postsecondary graduates and using survey data on a number of earnings-related characteristics. The data cover three graduating classes of university and community college students: 1982, 1986 and 1990. These data indicate that the gender earnings gap among graduates has narrowed in recent years. In fact among the most recent class, we found that female university graduates are rewarded slightly better than their male counterparts after controlling for experience, job tenure, education and hours of work. A small gender gap persists among community college graduates: about three-and-a-half percent on an hourly wage basis. For all graduates, the earnings gap tended to increase with age, even after controlling for previous work experience.

    Release date: 1994-11-17
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Analysis (33)

Analysis (33) (0 to 10 of 33 results)

  • Articles and reports: 75-006-X201800154974
    Description:

    This study uses the 2017 and 2018 Labour Force Survey to provide a recent profile of minimum wage workers. The paper focuses on three groups of minimum wage workers: students aged 15 to 24 and non-students the same age living with their parents (referred to below as minimum wage workers under 25); individuals aged 15 to 64 who are single, lone parents or spouses/partners in single-earner couples; and individuals aged 15 to 64 who are spouses/partners in dual-earner couples. The article documents the relative importance of these three groups as well as their weekly wages and work patterns.

    Release date: 2018-06-13

  • Articles and reports: 11-626-X2018082
    Description:

    The Canadian and U.S. labour markets have experienced a number of economic shocks since the early 2000s. This Economic Insights article assesses how employment rates and wages of persons aged 25 to 54 evolved in Canada and the United States from 2000 to 2017. The analysis is based on data from Statistics Canada’s Labour Force Survey (LFS), and on the U.S. Bureau of Labor Statistics’ Current Population Survey (CPS).

    Release date: 2018-06-04

  • Articles and reports: 11F0019M2018405
    Description:

    Over the last three decades, full-time jobs and permanent jobs have generally become scarcer for youth. In addition, median real hourly wages of young men employed in full-time jobs grew little, if at all, from the early 1980s to the mid-2010s. Along with other pieces of evidence from media reports, these facts have raised concerns that recent youth cohorts now experience less favourable earnings trajectories as they age than previous cohorts did 40 years ago. This study compares the earnings trajectories of several recent cohorts of young workers with those of cohorts who entered the labour market in the late 1970s. The study combines three versions of Statistics Canada’s Longitudinal Worker file (LWF) and covers the 1978-to-2015 period.

    Release date: 2018-05-29

  • Articles and reports: 11F0019M2017400
    Description:

    Despite a large literature estimating the effects of income taxation on the labour decisions of young and middle-aged workers, little is known about the extent to which older workers respond to changes in their income taxes. This paper explores this unresolved empirical issue, using longitudinal administrative data on more than one million individuals from Canada and exploiting a recent tax reform in the empirical identification strategy that explicitly targeted older couples. The findings offer new insight into the “black box” of intra-household labour supply and inform the optimal designs of income tax and retirement income systems.

    Release date: 2017-11-23

  • Articles and reports: 11-630-X2017004
    Description:

    This month’s edition of Canadian Megatrends looks at labour force participation, unemployment, full-time and part-time work, and real wages for young workers in Canada from 1946 to 2015.

    Release date: 2017-05-31

  • Articles and reports: 75-001-X201100111394
    Geography: Canada
    Description:

    The gender gap in hourly wages narrowed between the late 1980s and the late 2000s. This article analyses the narrowing wage gap according to the changing characteristics of men and women in paid work, the changes in pay received for those characteristics, and the extent to which who works in each period affects the results.

    Release date: 2010-12-20

  • Articles and reports: 89-503-X201000111388
    Geography: Canada
    Description:

    The economic well-being chapter of Women in Canada examines several factors related to well-being of women and compares it to that for men. More specifically, it examines total income and earnings, assets, debts and net worth by family type and age. Information on pension coverage, RRSP contributions, incidence of low income and dual earners is included.

    Release date: 2010-12-16

  • Articles and reports: 75-001-X200910313227
    Geography: Canada
    Description:

    A sizeable earnings gap exists between Canadian women with children and those without. Women with children earned, on average, 12% less than women without children, and the gap increased with the number of children. Lone mothers, mothers with long career interruptions, and mothers with at least some postsecondary education experienced greater losses than married mothers, mothers with no or short career interruptions, and mothers with no more than a high school education.

    Release date: 2009-06-19

  • 9. Age and earnings Archived
    Articles and reports: 75-001-X200910113222
    Geography: Canada
    Description:

    Traditional age-earnings profiles, based on cross-sectional data, typically follow an inverted U-shaped pattern with annual earnings peaking around middle age. With longitudinal data on hourly earnings, the picture changes considerably.

    Release date: 2009-03-18

  • Articles and reports: 11F0019M2008311
    Geography: Canada
    Description:

    This paper examines the variability of workers' earnings in Canada over the 1982-to-2000 period by a graphical descriptive approach using the Longitudinal Administrative Data base file. Following Gottschalk and Moffitt (1994), we decompose the total variance of workers' earnings into a 'permanent' or long-run component between workers and a 'transitory' or year-to-year earnings instability component over time for given workers. The decomposition is applied to a five-year moving window. Several results are found. First, the general rise in total earnings variance over the period reflects quite different patterns of change for its separate components. Long-run earnings inequality has generally increased over the period, while year-to-year earnings instability has pretty steadily decreased. Changes in the total earnings variability have been driven primarily by changes in long-run earnings inequality. Second, the patterns of change in the two variance components showed substantial differences between men and women. Since the early 1990s, long-run earnings inequality continued to rise for men, but it markedly decreased for women. Since the late 1980s, earnings instability fell quite steadily for women, but it showed a more cyclical pattern for men. Third, the patterns across ages of the two variance components are almost opposite. Long-run earnings inequality generally rises with age, so it is markedly highest among older-age workers. Earnings instability, in contrast, generally declines with age, so it is markedly highest among entry-age workers.

    Release date: 2008-12-18
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