The Evolution of Hourly Compensation in Canada between 1980 and 2010

27 Pages Posted: 30 Mar 2015

See all articles by Jean-Yves Duclos

Jean-Yves Duclos

Laval University; IZA Institute of Labor Economics

Mathieu Pellerin

Université Laval

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Abstract

We consider changes in the distribution of hourly compensation in Canada using confidential census data and the recent National Household Survey over the last three decades. We find that the coefficient of variation of wages among full-time workers has almost doubled between 1980 and 2010. The rapid growth of the 99.9th percentile is the main driver of that increase. Changes in the composition of the workforce explain less than 25% of the rise in wage inequality. However, composition changes explain most of the increase in average hourly compensation over those three decades, while wages stagnate within skill groups.

Keywords: wage distribution, inequality, Canada, composition effects

JEL Classification: J11, J31

Suggested Citation

Duclos, Jean-Yves and Pellerin, Mathieu, The Evolution of Hourly Compensation in Canada between 1980 and 2010. IZA Discussion Paper No. 8917, Available at SSRN: https://ssrn.com/abstract=2586420 or http://dx.doi.org/10.2139/ssrn.2586420

Jean-Yves Duclos (Contact Author)

Laval University ( email )

Quebec G1K 7P4
Canada
418-656-7096 (Phone)
418-656-9727 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Mathieu Pellerin

Université Laval ( email )

2214 Pavillon J-A. DeSeve
Quebec, Quebec G1K 7P4
Canada

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