Working Paper: CEPR ID: DP5847
Authors: Tamim Bayoumi; Bennett Sutton; Andrew Swiston
Abstract: We analyze the flexibility of the Canadian labour market across provinces in both an inter- and intra-national context using macroeconomic data on employment, unemployment, participation, and (for Canada) migration and real wages. We find that Canadian labour markets respond in a similar manner to their U.S. counterparts and are more flexible than those in major euro area countries. Within Canada, the results indicate that labour markets in Ontario and provinces further west are more flexible, particularly with regard to migration, while those further east are less so.
Keywords: Economic flexibility; Labour market; Migration
JEL Codes: E24; J21; J61
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Migration (F22) | Labor Market Adjustments (J68) |
| Migration (F22) | Labor Market Flexibility (J48) |
| Labor Market Structures (J42) | Economic Performance (P17) |
| Labor Market Flexibility (Ontario) (J29) | Labor Market Flexibility (Western Provinces) (J48) |
| Labor Market Flexibility (Western Provinces) (J48) | Labor Market Adjustments (J68) |
| Cultural Differences (Z19) | Migration Patterns (F22) |
| Labor Market Flexibility (Quebec) (J48) | Employment Stability (J63) |
| Real Wage Adjustments (J31) | Labor Market Adjustments (J68) |
| Macroeconomic Disturbances (E39) | Adjustment Process Across Regions (R23) |