This thesis uses a comprehensive data set to examine the relationship between Canadian labour market outcomes and several changes in the policy environment. The data set, spanning the period 1981-98, is compiled from a number of comparable surveys and contains information on the demographics and job characteristics of individual workers. The first chapter examines the impact that the tariff reductions of the Canada- U.S. Free Trade Agreement (CUSFTA) had on the inter-industry wage structure in the goods producing sector. Previous studies use industry-level data and consequently are unable to control for either differences in worker composition or divergent wage trends for different worker types. These studies find that tariff cuts either had no effect or increased the relative wages of workers in impacted sectors. In contrast, I use data with information on worker characteristics and find that the relative wages of non-union workers in impacted industries decreased. The second chapter investigates the link between the CUSFTA tariff reductions and several labour market outcomes that are potentially linked to industrial productivity. In particular, I examine whether tariff reductions are related to changes in the (i) the size of firm a worker is likely to be employed with, (ii) the probability that a worker will be represented by a union, and (iii) the mean skill level of workers. Although I find evidence that these outcomes have changed over time, none of them seem to be linked directly to CUSFTA. The final chapter, co-authored with David Green, examines the extent to which the declining market outcomes of successive cohorts of job entrants in Canada can be accounted for by changes in the minimum wage, unionization rate, and industrial composition of employment. A flexible density estimator is used, which allows for a comparison between cohorts across the entire wage distribution. The main findings are that for males, changes in unionization and industrial composition can account for about a quarter of the decline in wage outcomes for new job entrants between 1998 and 1981. Similar results are found for females; in addition, the minimum wage provides a "wall" against further erosion for more recent cohorts of entrants.

This thesis uses a comprehensive data set to examine the relationship between Canadian labour market outcomes and several changes in the policy environment. The data set, spanning the period 1981-98, is compiled from a number of comparable surveys and contains information on the demographics and job characteristics of individual workers. The first chapter examines the impact that the tariff reductions of the Canada- U.S. Free Trade Agreement (CUSFTA) had on the inter-industry wage structure in the goods producing sector. Previous studies use industry-level data and consequently are unable to control for either differences in worker composition or divergent wage trends for different worker types. These studies find that tariff cuts either had no effect or increased the relative wages of workers in impacted sectors. In contrast, I use data with information on worker characteristics and find that the relative wages of non-union workers in impacted industries decreased. The second chapter investigates the link between the CUSFTA tariff reductions and several labour market outcomes that are potentially linked to industrial productivity. In particular, I examine whether tariff reductions are related to changes in the (i) the size of firm a worker is likely to be employed with, (ii) the probability that a worker will be represented by a union, and (iii) the mean skill level of workers. Although I find evidence that these outcomes have changed over time, none of them seem to be linked directly to CUSFTA. The final chapter, co-authored with David Green, examines the extent to which the declining market outcomes of successive cohorts of job entrants in Canada can be accounted for by changes in the minimum wage, unionization rate, and industrial composition of employment. A flexible density estimator is used, which allows for a comparison between cohorts across the entire wage distribution. The main findings are that for males, changes in unionization and industrial composition can account for about a quarter of the decline in wage outcomes for new job entrants between 1998 and 1981. Similar results are found for females; in addition, the minimum wage provides a "wall" against further erosion for more recent cohorts of entrants. / Arts, Faculty of / Vancouver School of Economics / Graduate

Income support programs constitute an integral component of modern labour markets and represent significant fiscal commitments on the part of governments. This thesis examines two key income support programs in Canada and their impact on labour market outcomes, namely employment insurance (EI) and social assistance (SA). Together expenditures on EI and SA represented approximately 2 per cent of Canadian GDP in 1998-99 and influenced a range of labour market decisions relating to labour force participation, employment and unemployment spells. The analysis in this thesis provides new evidence on the role of the EI and SA programs on labour market outcomes by examining the interface between the programs and labour market behaviour. An analysis of the take-up of SA amongst a sample of SA eligible individuals is also undertaken that provides new evidence on the determinants of participation in the SA program in Canada. The analysis in this thesis uses the 1997 Canadian Out of Employment Panel dataset, a unique dataset that provides detailed information on the use of income support programs and employment patterns, and detailed information on a rich set of personal and household characteristics. The approach adopted in this thesis is to use a generalized probability transition model to examine the nature of the interface between income support programs and their effect on labour market outcomes. This approach allows the implications of changes in either program for use of the other program, and overall labour market outcomes, to be identified. The analysis of the SA take-up decision uses a discrete choice framework that explicitly takes account of the potential endogeneity of benefit levels available to the individual. A number of conclusions can be drawn from the analysis undertaken in this thesis. First, when the generosity of the SA program is reduced, individuals decrease use of both the SA and EI programs. Conversely, reducing the generosity of the EI program results in an increase in the use, albeit relatively small, of the SA program. The results of the analysis of the take-up decision of the SA program point to the key role of benefit levels and previous use of the program as determinants of the likelihood that an individual takes up SA.

The debate over the quality of work has been on-going for a number of years. Recently, non-standard work has figured predominantly in that debate. Some researchers have argued that the rise of non-standard work is evidence of the declining quality of work since it offers few benefits, little job security and lower incomes. Other research has indicated that it is the effect of job characteristics themselves that determine quality of work, whether in standard or non-standard employment. Other researchers have noted that it is the profile of workers in these jobs that is a good indicator of whether the employment is "good" or "bad" since most individuals who are from groups on the periphery of the labour force tend to be in jobs of lesser quality. / This study addresses the quality of work in the Canadian context from 1989 to 1994, by exploring its connection to all three of these theories: the rise of non-standard work, the decline of "good" job characteristics and the changing profile of workers in non-standard work. What was found may be an interesting trend. Non-standard employment is becoming more mainstream and may even be influencing the characteristics of standard employment. The demographic profile of non-standard workers is also beginning to resemble that of standard workers. It could be concluded that the quality of work is indeed shifting. However, it was difficult to determine whether the shifts were indeed long-term or indicative only of difficult economic times in Canada. The issue of job quality is complex and better definitions of quality of work and longer timeframes should be considered in future research, to better understand what was/is happening in the Canadian labour market. If non-standard employment is truly "bad" work and it continues to increase, there will be fundamental implications for the quality of work in Canada.

Income support programs constitute an integral component of modern labour markets and represent significant fiscal commitments on the part of governments. This thesis examines two key income support programs in Canada and their impact on labour market outcomes, namely employment insurance (EI) and social assistance (SA). Together expenditures on EI and SA represented approximately 2 per cent of Canadian GDP in 1998-99 and influenced a range of labour market decisions relating to labour force participation, employment and unemployment spells. The analysis in this thesis provides new evidence on the role of the EI and SA programs on labour market outcomes by examining the interface between the programs and labour market behaviour. An analysis of the take-up of SA amongst a sample of SA eligible individuals is also undertaken that provides new evidence on the determinants of participation in the SA program in Canada. The analysis in this thesis uses the 1997 Canadian Out of Employment Panel dataset, a unique dataset that provides detailed information on the use of income support programs and employment patterns, and detailed information on a rich set of personal and household characteristics. The approach adopted in this thesis is to use a generalized probability transition model to examine the nature of the interface between income support programs and their effect on labour market outcomes. This approach allows the implications of changes in either program for use of the other program, and overall labour market outcomes, to be identified. The analysis of the SA take-up decision uses a discrete choice framework that explicitly takes account of the potential endogeneity of benefit levels available to the individual. A number of conclusions can be drawn from the analysis undertaken in this thesis. First, when the generosity of the SA program is reduced, individuals decrease use of both the SA and EI programs. Conversely, reducing the generosity of the EI program results in an increase in the use, albeit relatively small, of the SA program. The results of the analysis of the take-up decision of the SA program point to the key role of benefit levels and previous use of the program as determinants of the likelihood that an individual takes up SA. / Arts, Faculty of / Vancouver School of Economics / Graduate

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