Earnings, wages and non-wage benefits

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  • Articles and reports: 11F0019M2008304
    Geography: Canada
    Description:

    Using data from a large Canadian longitudinal dataset, we examine whether earnings of wives and teenagers increase in response to layoffs experienced by husbands. We find virtually no evidence of an "added worker effect" for the earnings of teenagers. However, we find that among families with no children of working age, wives' earnings offset about one fifth of the earnings losses experienced by husbands five years after the layoff.

    We also contrast the long-term earnings losses experienced by husbands and unattached males. Even though the former group might be less mobile geographically than the latter, we find that both groups experience roughly the same earnings losses in the long run. Furthermore, the income losses (before tax and after tax) of both groups are also very similar. However, because unattached males have much lower pre-layoff income, they experience much greater relative income shocks than (families of) laid-off husbands.

    Release date: 2008-02-21

  • Articles and reports: 75-001-X200710913194
    Geography: Canada
    Description:

    No agreed-upon definition exists of what constitutes high income, either in dollar cut-offs or as a percentage of the population. Researchers have used widely varying methods, producing widely varying outcomes. This paper presents various criteria for defining high income and looks at some of the characteristics and behaviours of high-income taxfilers under these definitions. Income taxes paid and effective tax rates are also examined.

    Release date: 2007-12-19

  • Articles and reports: 89-552-M2007018
    Geography: Canada
    Description:

    This study examines the distribution of literacy skills in the Canadian economy and the ways in which they are generated. In large part, the generation of literacy skills has to do with formal schooling and parental inputs into their children's education. The nature of literacy generation in the years after individuals have left formal schooling and are in the labour market is also investigated. Once the core facts about literacy in the economy have been established, the study turns to examining the impact of increased literacy on individual earnings. Both the causal impact of literacy on earnings and the joint distribution of literacy and income are explored. The authors argue that the latter provides a more complete measure of how well an individual is able to function in society.

    The study focuses mainly on data from the Canadian component of the 2003 International Adult Literacy and Skills Survey (IALSS), composed of a sample of over 22,000 respondents. The Canadian component of the 1994 International Adult Literacy Survey (IALS) is also used in order to obtain a more complete picture of how literacy changes with age and across birth cohorts.

    Release date: 2007-11-30

  • Articles and reports: 11F0019M2007302
    Geography: Canada
    Description:

    The high-tech sector was a major driving force behind the Canadian economic recovery of the late 1990s. It is well known that the tide began to turn quite suddenly in 2001 when sector-wide employment and earnings halted this upward trend, despite continued gains in the rest of the economy. As informative as employment and earnings statistics may be, they do not paint a complete picture of the severity of the high-tech meltdown. A decline in employment may result from reduced hiring and natural attrition, as opposed to layoffs, while a decline in earnings among high-tech workers says little about the fortunes of laid-off workers who did not regain employment in the high-tech sector. In this study, I use a unique administrative data source to address both of these gaps in our knowledge of the high-tech meltdown. Specifically, the study explores permanent layoffs in the high-tech sector, as well as earnings losses of laid-off high-tech workers. The findings suggest that the high-tech meltdown resulted in a sudden and dramatic increase in the probability of experiencing a permanent layoff, which more than quadrupled in the manufacturing sector from 2000 to 2001. Ottawa-Gatineau workers in the industry were hit particularly hard on this front, as the permanent layoff rate rose by a factor of 11 from 2000 to 2001. Moreover, laid-off manufacturing high-tech workers who found a new job saw a very steep decline in earnings. This decline in earnings was well above the declines registered among any other groups of laid-off workers, including workers who were laid off during the "jobless recovery" of the 1990s. Among laid-off high-tech workers who found a new job, about four out of five did not locate employment in high-tech, and about one out of three moved to another city. In Ottawa-Gatineau, many former high-tech employees found jobs in the federal government. However, about two in five laid-off high-tech workers left the city.

    Release date: 2007-07-20

  • Articles and reports: 11F0019M2007301
    Geography: Canada
    Description:

    Young women have gained considerable ground on young men in terms of educational attainment in the 1990s. The objective of this study is to assess the role of rapidly rising educational attainment among young women in raising their relative position in the labour market. The findings suggest that the educational trends have not contributed towards a decline in the full-time employment gap. Nevertheless, they have contributed towards a decline in the gender earnings gap, especially in the 1990s. However, university-educated women have lost ground to university-educated men. This is likely due to the fact that men and women continued to choose traditional disciplines during the 1990s, but only male-dominated disciplines saw improvements in average earnings.

    Release date: 2007-06-12

  • Articles and reports: 11F0019M2007292
    Geography: Canada
    Description:

    This paper models earnings of male and female Bachelor's graduates in Canada five years after graduation. Using a university fixed-effect approach, the research finds evidence of significant (fixed) variations in earnings among graduates from different universities. Within universities, changes over time in various characteristics are correlated with changes in graduates' earnings. Increases in undergraduate enrollment are associated with declines in subsequent earnings for graduates, suggesting crowding out. For men, but not women, increases in the professor - student ratio are associated with meaningful gains in students' subsequent earnings. Models that do not condition on a student's major show increased effects of changes in a university's characteristics, with estimated effects rising up to almost two-fold. For women in particular, changes in several university characteristics are strongly associated with changes in women's choice of major. Changes in university characteristics are not strongly related to the probability of employment five years after graduation.

    Release date: 2007-02-26

  • Articles and reports: 11F0019M2007289
    Geography: Canada
    Description:

    The degree to which workers leave the country was a much-discussed issue in Canada - as elsewhere - in the latter part of the 1990s, although recent empirical evidence shows that it was not such a widespread phenomenon after all, and that rates of leaving have declined substantially in recent years. One aspect of the international mobility dynamic that has not yet been addressed, however, is the effect on individuals' earnings of leaving the country and then returning. The lack of empirical evidence on this issue stems principally from the unavailability of the kind of longitudinal data required for such an analysis. The contribution of this paper is to present evidence on how leaving and returning to Canada affects individuals' earnings based on an analysis carried out with the Longitudinal Administrative Database. The models estimated use movers' (relative) pre-departure profiles as the basis of comparison for their post-return (relative) earnings patterns in order to control for any pre-existing differences in the earnings profiles of movers and non-movers (while also controlling for other factors that affect individuals' earnings at any point in time).

    Overall, those who leave the country have higher earnings than non-movers upon their returns, but most of these differences were already present in the pre-departure period. In terms of net earnings growth, individuals who were away for two to five years appear to do best, and enjoy earnings that are 12% higher in the five years following their return relative to their pre-departure levels (controlling for other factors), while those who leave for just one year have smaller gains, and those who spend longer periods abroad have lower (relative) earnings upon their returns as compared to before leaving (perhaps due to other events associated with their mobility patterns). Interestingly, these gains seem to be concentrated among those who had the lowest pre-move earnings levels (less than $60,000), while those higher up on the earnings ladder had smaller and more variable gains.

    Release date: 2007-01-18

  • Articles and reports: 11F0019M2007291
    Geography: Canada
    Description:

    Using Statistics Canada's Longitudinal Worker File, we document short-term and long-term earnings losses for a large (10%) sample of Canadian workers who lost their job through firm closures or mass layoffs during the late 1980s and the 1990s. Our use of a nationally representative sample allows us to examine how earnings losses vary across age groups, gender, industries and firms of different sizes. Furthermore, we conduct separate analyses for workers displaced only through firm closures and for a broader sample displaced either through firm closures or mass layoffs. Our main finding is that while the long-term earnings losses experienced on average by workers who are displaced through firm closures or mass layoffs are important, those experienced by displaced workers with considerable seniority appear to be even more substantial. Consistent with findings from the United States by Jacobson, Lalonde and Sullivan (1993), high-seniority displaced men experience long-term earnings losses that represent between 18% and 35% of their pre-displacement earnings. For their female counterparts, the corresponding estimates vary between 24% and 35%.

    Release date: 2007-01-16

  • Articles and reports: 75-001-X200611013172
    Geography: Canada
    Description:

    Using tax data, this paper examines earnings instability among lone parents, unattached individuals, and two-parent families over the past two decades. When income tax effects and main sources of income were considered, no strong evidence of a widespread increase in instability was found. Government transfers play a particularly important role in reducing the earnings instability of lone mothers and unattached individuals

    Release date: 2006-12-20

  • Articles and reports: 88-003-X20060029242
    Geography: Canada
    Description:

    There is a growing supply of scientists and engineers with doctorates in the natural and applied sciences occupation but, on the other hand, there is a potential for future shortages of university professors concludes a forthcoming Statistics Canada study entitled Where are the Scientists & Engineers? One reason for the lower replacement numbers for university professors is that PhDs may be turning away from educational services towards higher paying industries for employment.

    Release date: 2006-06-27
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  • Articles and reports: 11F0019M2014360
    Geography: Canada
    Description:

    This study examines which factors underlie the narrowing of wage differences seen between young bachelor’s degree holders and high school graduates from the 2000-to-2002 period to the 2010-to-2012 period and the widening of differences in full-time paid employment rates between these two groups.

    Four types of factors are considered: those associated with changes in labour supply, labour demand, institutions and employer–employee contracts, and general economic conditions.

    Changes in the population of bachelor’s degree holders relative to the population of high school graduates are used to capture changes in relative labour supply.

    Release date: 2014-04-28

  • Articles and reports: 11F0019M2014359
    Geography: Canada
    Description:

    This paper examines the long-term labour market premiums associated with completing a college certificate and a bachelor's degree, compared to completing a high school diploma. Several labour market outcomes of individuals are examined with longitudinal data over a 20-year period spanning their mid-30s to their mid-50s.

    With the creation of a new linked file consisting of the 1991 Census of Population and the Longitudinal Worker File (LWF), it is now possible to follow individuals in the labour market for a longer period of time than is feasible with existing survey data. The purpose of this study is to compare labour market outcomes of individuals with different levels of educational attainment over a 20-year period spanning their mid-30s to their mid-50s. Three levels of education are considered, corresponding to the decisions made by students following high school graduation: a high school diploma, a college certificate, and a bachelor's degree. Longitudinal data are used to track total earnings (wages and salaries plus net self-employment income), coverage in an employer-sponsored pension plan, employment, union membership, and permanent and temporary layoffs over the period 1991 to 2010.

    Release date: 2014-02-27

  • Articles and reports: 11F0019M2014354
    Geography: Canada
    Description:

    This paper examines the long-term labour market premiums associated with a high school diploma. The focus is on the value of the qualification (the signaling effect), but the premiums associated with the number of years of schooling required to obtain the qualification (the human-capital effect) are also estimated. The labour market outcomes of individuals born in the mid-1960s are measured from their mid-20s to their mid-40s with longitudinal administrative data from the Longitudinal Worker File (LWF) that are linked to the 1991 Census of Population. Two groups are considered: terminal high school graduates (those who had obtained a high school diploma but had not acquired any postsecondary education by the 1991 Census) and individuals without a high school diploma (those who had no high school diploma, were not enrolled in high school, and had no postsecondary education at the time of the 1991 Census).

    Release date: 2014-01-23

  • Articles and reports: 11-626-X2013032
    Geography: Canada
    Description:

    This article addresses three questions: (1) What were the employment dynamics of a specific cohort of immigrant and native-born workers over the 20 years from 1991 to 2010? (2) To what extent did initial differences in earnings and pension coverage between the two groups narrow during this period? (3) Which factors were associated with the narrowing of these differences? The data are from the linked Census 1991-Longitudinal Worker File and pertain to real annual wages and salaries and pension coverage of immigrants aged 25 to 34 in 1991 who arrived in Canada from 1985 to 1990 and native-born workers of the same age.

    Release date: 2013-11-29

  • Articles and reports: 11F0019M2013347
    Geography: Canada
    Description:

    This study examines how real wages of Canadian workers evolved from 1981 to 2011 across five dimensions: gender, age, education, industry, and occupation.

    Release date: 2013-03-15

  • Articles and reports: 11F0019M2012346
    Geography: Canada
    Description:

    This study examines long-term earnings losses of workers laid off during the early 1990s and the early 2000s using data from Statistics Canada's Longitudinal Worker File (LWF). In contrast to earlier studies, many of which focused on narrowly defined samples, this study compares earnings losses across all groups of displaced workers with stable labour market attachment prior to layoff. The study shows that focusing solely on high-seniority laid-off workers or workers laid off in firm closures leads to the exclusion of at least two-thirds of Canadian displaced workers with stable labour market attachment.

    Release date: 2012-11-29

  • Articles and reports: 11F0019M2012345
    Geography: Canada
    Description:

    This study uses the 2007 National Apprenticeship Survey (NAS) to compare hourly wage differences observed between apprentices who complete their programs and apprentices who discontinue their programs. The primary objective is to estimate the magnitude of the wage difference between these groups while taking into account a broad range of characteristics. Furthermore, wage comparisons are refined further by disaggregating apprentices into four mutually exclusive groups, defined on the basis of program completion and certification.

    Release date: 2012-10-03

  • Articles and reports: 11-008-X201200211697
    Geography: Canada
    Description:

    Many parents take time off work to care for a child after birth or adoption. Whether or not parents take leave and the duration of that leave may be influenced by characteristics such as parental employment or child and maternal health factors.

    This article examines children's experiences of parent-reported leave after their birth or adoption. In addition, associations between leave and parent employment and child and maternal health factors are analyzed using data from the 2010 Survey of Young Canadians.

    Release date: 2012-07-30

  • Articles and reports: 11-626-X2012008
    Geography: Canada
    Description:

    This article in the Economic Insights series examines two questions: (1) Which groups of Canadian workers have experienced stronger real wage growth over the past three decades?; and (2) To what extent do individuals' acquisition of education, general work experience, and seniority within firms, as well as their movements into higher-wage or lower-wage occupations and industries, account for differences in real wage growth observed across groups of workers? This article uses data from various Statistics Canada surveys and focuses on the real (hourly or weekly) wages earned by full-time workers. It is based on research carried out at Statistics Canada aimed at providing information on how wage rates of Canadian workers have changed over the past three decades. Wages are expressed in 2010 dollars.

    Release date: 2012-06-15

  • Articles and reports: 11-622-M2012023
    Geography: Canada
    Description:

    This paper examines the process by which migrants experience gains in earnings subsequent to migration and, in particular, the advantage that migrants obtain from moving to large, dynamic metropolitan labour markets, using Toronto as a benchmark. There are two potentially distinct patterns to gains in earnings associated with migration. The first is a step upwards in which workers realize immediate gains in earnings subsequent to migration. The second is accelerated gains in earnings subsequent to migration. Immediate gains are associated with obtaining a position in a more productive firm and/or a better match between worker skills and abilities and job tasks. Accelerated gains in earnings are associated processes that take time, such as learning or job switching as workers and firms seek out better matches. Evaluated here is the expectation that the economies of large metropolitan areas provide workers with an initial productive advantage stemming from a one-time improvement in worker productivity and/or a dynamic that accelerates gains in earnings over time through the potentially entwined processes of learning and matching. A variety of datasets and methodologies, including propensity score matching, are used to evaluate patterns of income gains associated with migration to Toronto.

    Release date: 2012-05-03
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