Uncovering the Differences Among Displaced Workers: Evidence from Canadian Job Separation Records Staff Working Paper 2023-55 Serdar Birinci, Youngmin Park, Kurt See, Thomas Michael Pugh We revisit the measurement of the sources and consequences of job displacement using Canadian job separation records. Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Potential output, Productivity JEL Code(s): E, E2, E24, E3, E32, J, J3, J31, J6, J63, J65
Labor Market Shocks and Monetary Policy Staff Working Paper 2023-52 Serdar Birinci, Fatih Karahan, Yusuf Mercan, Kurt See We develop a heterogeneous-agent New Keynesian model featuring a frictional labor market with on-the-job search to quantitatively study the positive and normative implications of employer-to-employer transitions for inflation. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Inflation and prices, Labour markets, Monetary policy JEL Code(s): E, E1, E12, E2, E24, E5, E52, J, J3, J31, J6, J62, J64
Labour Supply and Firm Size Staff Working Paper 2023-47 Lin Shao, Faisal Sohail, Emircan Yurdagul This paper documents a systematic pattern of how wages, hours and their relationship vary across firms of different sizes. Using a model with heterogeneous firms and workers, we show how the interplay between wages, hours and firm size affect worker sorting and inequality. Content Type(s): Staff research, Staff working papers Topic(s): Firm dynamics, Labour markets JEL Code(s): E, E2, E24, J, J2, J3, J31
Are Working Hours Complements in Production? Staff Working Paper 2022-47 Lin Shao, Faisal Sohail, Emircan Yurdagul Using Canadian matched employer-employee data, we show that working hours of different workers are gross complements in production rather than perfect substitutes, as is typically assumed by macroeconomic models of production. Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Labour markets JEL Code(s): E, E2, E23, J, J2, J22, J23, J3, J31
Has wage setting changed in Canada? Evidence from the pre-pandemic 2020 Wage-Setting Survey Staff Analytical Note 2022-10 David Amirault, Sarah Miller, Matthieu Verstraete Just before the pandemic began, the Bank of Canada conducted the 2020 Wage-Setting Survey. The goal was to explore the unusual trend of subdued wage growth in 2018 and 2019 despite a tightening in the labour market. Although this wage puzzle was beginning to resolve at the time of the survey, results highlight changes in several factors that may have important impacts on wage dynamics. Content Type(s): Staff research, Staff analytical notes Topic(s): Central bank research, Labour markets JEL Code(s): J, J3, J31, J32, J33, J6, J63
Income Inequality in Canada Staff Discussion Paper 2022-16 Sarah Burkinshaw, Yaz Terajima, Carolyn A. Wilkins Data show that income inequality in Canada increased substantially during the 1980s and first half of the 1990s but has been relatively stable over the past 25 years. This increase was felt mainly by low-income earners and younger people, while older people benefited from higher retirement income. Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Labour markets, Monetary and financial indicators JEL Code(s): D, D3, D31, D6, D63, I, I2, I24, I3, I32, J, J3, J31, J32, N, N3, N32
Contribution of Human Capital Accumulation to Canadian Economic Growth Staff Discussion Paper 2022-7 Audra Bowlus, Youngmin Park, Chris Robinson This paper quantifies the contribution of human capital accumulation to the growth of real gross domestic product (GDP) in Canada. Content Type(s): Staff research, Staff discussion papers Topic(s): Econometric and statistical methods, Labour markets, Potential output, Productivity JEL Code(s): D, D2, D24, E, E2, E24, J, J2, J24, J3, J31, O, O4, O47
Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms Staff Working Paper 2021-20 Audra Bowlus, Émilien Gouin-Bonenfant, Huju Liu, Lance Lochner, Youngmin Park We use four decades of Canadian matched employer-employee data to explore how inequality and the dynamics of individual earnings have evolved over time in Canada. We also examine how the earnings growth of individuals is related to the growth of their employers. Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Firm dynamics, Labour markets, Potential output, Productivity JEL Code(s): D, D2, D22, D3, D31, E, E2, E24, J, J2, J24, J3, J31, J6, J63
Towards a HANK Model for Canada: Estimating a Canadian Income Process Staff Discussion Paper 2020-13 Iskander Karibzhanov How might one simulate a million realistic income paths and compute their statistical moments in under a second? Using CUDA-based methods to estimate the Canadian earnings process, I find that the distribution of labour income growth is sharply peaked with heavy tails—similar to that in the United States. Content Type(s): Staff research, Staff discussion papers Topic(s): Economic models, Labour markets JEL Code(s): D, D3, D31, E, E2, E24, J, J3, J31
Optimal Taxation in Asset Markets with Adverse Selection Staff Working Paper 2020-11 Mohammad Davoodalhosseini What is the optimal tax schedule in over-the-counter markets, e.g., those for corporate bonds? I find that an optimal tax schedule is often non-monotonic. For example, trading of some high-price assets should be subsidized, and trading of some low-price assets should be taxed. Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Financial markets, Financial system regulation and policies, Market structure and pricing JEL Code(s): D, D8, D82, D83, E, E2, E24, G, G1, G10, J, J3, J31, J6, J64