Working Paper: NBER ID: w28757
Authors: Audra Bowlus; Milien Gouin-Bonenfant; Huju Liu; Lance Lochner; Youngmin Park
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 has 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: earnings inequality; earnings dynamics; Canada; firm size; employment growth
JEL Codes: E24; J24; J31; J62; L25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm size (L25) | worker earnings (J31) |
| employment growth (O49) | worker earnings (J31) |
| firm size (L25) | earnings dynamics (J31) |
| employment growth (O49) | earnings dynamics (J31) |
| gender (J16) | earnings dynamics (J31) |