DP5847 Shocking Aspects of Canadian Labour Markets

Author(s):	Tamim Bayoumi, Bennett Sutton, Andrew J. Swiston
Publication Date:	September 2006
Keyword(s):	economic flexibility, labour market, migration
JEL(s):	E24, J21, J61
Programme Areas:	International Macroeconomics
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=5847

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.