Long-Run Changes in the Labour Share of National Income in Canada, 1926-1966

The stability of the share of national income accruing to labour has long been a “statistical puzzle” in economic research. Although in recent years many empirical studies have revealed a rising share of labour, their conclusions have been disputed on statistical grounds. It has been argued that if adjustments are made for the earnings attributable to labour services of the self-employed and for the inter-industry shifts, the labour share of national income will show very little, if any, increase.

This monograph examines the long run behaviour of the labour share of national income in Canada. The unincorporated business income is divided into labour income and non-labour income, in order to examine the impact of such a division on the stability of the labour share. Since there have been significant inter-industry shifts in Canada over the past four decades, the monograph also analyzes the influence of these shifts on the secular movement of the share of labour in national income.

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Gender Differences in Union Membership Status: The Role of Labour Market Segmentation

The purpose of this paper is to study the key determinants of the union status of workers in Canada and to evaluate the relative significance of labour market segmentation by gender, in explaining the lower incidence of unionization among Canadian women. Using a unique micro data set, this study assesses the respective roles of demographic/human capital factors and the industry-occupation of employment in explaining gender differences in union membership in Canada. First, a union status probability equation is estimated on a pooled sample using explanatory variables such as age, sex, marital status, education, job tenure, province of residence, part-time/full-time status of the worker, and industry and occupation of employment, on the assumption that only intercept coefficients differ between men and women. Following this, separate equations are estimated for males and females allowing for differences in slope coefficients. Next, we estimate three separate union membership status equations based on the pooled sample of individuals of both sexes. The first equation contains only demographic/human capital factors as explanatory variables. The second equation adds controls for occupation of the individual to the demographic/human capital vector of variables. Finally, the equation is augmented with controls for industry of employment. The estimated coefficient on the sex variable in the three equations is compared to evaluate the role of industry and occupation of employment in explaining the differential in the extent of unionization between men and women. As well, the likelihood ratio tests are performed to test the joint significance of industry, occupation and human capital/demographic variables as predictors of union membership.

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