Impact of occupational licensing on wages and wage inequality: Canadian evidence 1998 – 2018
Authors: Tingting Zhang and Morley Gunderson
Based on Labour Force Survey data for Canada over the period 1998 to 2018, we find occupational licensing raised average real wages from 6.1% in 1998 to 13.8% by 2018, slightly less for propensity score matching estimates, suggesting the effect is somewhat lower after adjusting for unobservable factors that can affect pay. Unconditional quantile regressions indicate the licensing effects on wages are greater at the higher ends of the wage distribution, with those inequality enhancing effects becoming more pronounced over time. In contrast, the union wage premium declined steadily from 9.2% in 1998 to 5% in 2018, with a substantial premium at the bottom of the wage distribution but a steady decline at the top, becoming negative at higher parts of the wage distribution, with those equality enhancing effects becoming less pronounced over time. Overall, the estimates for Canada indicate that occupational licensing contributes to wage inequality, and the effect is increasing over time, while unions reduce overall wage inequality, but this equalizing effect is decreasing over time.
Please note that abstracts only appear in the language of the publication and might not have a translation.
Danielle Lamb (2013).
Earnings inequality among Aboriginal groups in Canada
Journal of Labor Research , 224-240
Kate Rybczynski (2015).
What drives self-employment survival for women and men? Evidence from Canada
Journal of Labor Research , 27-43
Michelle Campolieti, Morley Gunderson, and Byron Y. Lee (2012).
The impact of minimum wage on poverty
Journal of Labor Research , 287-302
Rupa Banerjee (2008).
An examination of factors affecting perception of workplace discrimination
Journal of Labor Research , 380-401
M. Campolieti, T. Fang, and M. Gunderson (2005).
How minimum wages affect schooling-employment outcomes in Canada, 1993-1999
Journal of Labor Research , 533-545
Michele Campolieti, Tony Fang, and Morley Gunderson (2010).
Labour market outcomes and skill acquisition of high-school dropouts
Journal of Labor Research , 39-52
Elizabeth Dhuey, Jessie Lamontagne, and Tingting Zhang (2021).
Full-Day Kindergarten: Effects on Maternal Labor Supply
Education Finance & Policy , 533?557