The Incubated Revolution: Education, Cohort Effects, and the Linguistic Wage Gap in Quebec, 1970 to 2000

28 Pages Posted: 17 Jul 2020

See all articles by Julien Gagnon

Julien Gagnon

McKinsey & Co. Inc.

Vincent Geloso

George Mason University - Department of Economics

Maripier Isabelle

University of Toronto - Department of Economics

Date Written: June 26, 2020

Abstract

The wage gap between higher-earning English-speaking workers and those of the French-speaking majority, that had long characterized Quebec’s labour market, vanished between 1970 and 2000. We unveil a new empirical fact: the closing of the wage gap occurred through the replacement of older generations of workers by younger ones whose earnings were more equal. To explain this, we rely on a two-sector economy model characterized by linguistic barriers and capital mobility. The model not only explains the new fact but is also consistent with the timing of policy changes in the domain of education.

Keywords: Wage Gap, Canadian Economic History, Discrimination, Education, Convergence

JEL Classification: N32, J71, I24

Suggested Citation

Gagnon, Julien and Geloso, Vincent and Isabelle, Maripier, The Incubated Revolution: Education, Cohort Effects, and the Linguistic Wage Gap in Quebec, 1970 to 2000 (June 26, 2020). Available at SSRN: https://ssrn.com/abstract=3635875 or http://dx.doi.org/10.2139/ssrn.3635875

Julien Gagnon

McKinsey & Co. Inc. ( email )

Konigsallee 60C
Chicago, IL Quebec 60603
United States

Vincent Geloso (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

Maripier Isabelle

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S3G7
Canada

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