Local Labor Markets in Canada and the United States

Published in Journal of Labor Economics, 2019

Key Highlight: This paper examines US and Canadian local labor markets. Wage levels and inequality rise over time with city population in both countries, albeit less in Canada. Local labor demand shifts raise nominal wages similarly. Chinese import competition had a weaker negative impact on manufacturing employment in Canada. These results are consistent with Canada’s more redistributive transfer system and larger, more educated immigrant workforce.