Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241243 
Year of Publication: 
2021
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2021-20
Publisher: 
Bank of Canada, Ottawa
Abstract: 
This paper studies the evolution of individual earnings inequality and dynamics in Canada from 1983 to 2016 using tax files and administrative records. Linking these individuals to their employers (and rich administrative records on firms) beginning in 2001, it also documents the relationship between the earnings dynamics of workers and the size and growth of their employers. It highlights three main patterns over this period: First, with a few exceptions (sharp increase in top 1% and declining gender gap), Canada experienced relatively modest changes in overall earnings inequality, volatility, and mobility between 1983 and 2016. Second, there is considerable variability in earnings inequality and volatility over the business cycle. Third, the earnings dynamics of individuals are strongly related to the size and employment growth of their employers.
Subjects: 
Econometric and statistical methods
Firm dynamics
Labour markets
Potential output
Productivity
JEL: 
D22
D31
E24
J24
J31
J63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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