Study: Employment growth among lone mothers in Canada and the United States

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Employment rates and earnings among lone mothers rose by virtually identical magnitudes in Canada and the United States between 1980 and 2000, but for different reasons, according to a new study.

During the 20-year span, employment rates of single mothers rose by 12 percentage points in Canada and by 13 points in the United States. Earnings of all single mothers increased by almost 40% in both countries.

This study used census data to examine the demographic factors behind these improvements. It found that the increases were driven by different processes in the two countries.

In Canada, employment and earnings improved among lone mothers mostly because of demographic change. That is, these women were much better educated and significantly older in 2000 than in 1980, and gains in their aggregate employment and earnings reflected this. Two-thirds of the employment gains were associated with change in these demographic characteristics.

In the United States, changes in these demographic variables were less important, accounting for less than one-third of the overall employment gains over a similar period. Most of the gain was associated with changing labour market behavior and possible unmeasured variables.

To better understand the differences between the two countries, it is necessary to look at two groups of low-income mothers, those aged 40 and over, and those under 40.

Among the older group, the increase in employment rates occurred mostly in the 1980s in both countries, and the gains were much larger in Canada than in the United States. In Canada, almost all the gains in employment and earnings went to these older lone mothers.

Demographic factors accounted for higher employment and earnings among these older women. In both countries, changes in their age composition and education accounted for over two-thirds of the increase.

In contrast, among the younger under 40 group of single mothers, employment gains were much larger in the United States than in Canada. In both countries, these gains were concentrated in the 1990s, and were mainly the result of adjustments in labour market behaviour and other unmeasured variables.

Furthermore, the magnitude of these effects among younger lone mothers was much larger in the United States, where younger women made up a larger share of the population of lone mothers; 67% in the United States and 57% in Canada.

Definitions, data sources and methods: survey number 3901.

The study, "The demographic foundations of rising employment and earnings among single mothers in Canada and the United States, 1980 to 2000", is now available as part of the Analytical Studies Branch Research Paper Series (11F0019MIE2008305, free) from the Publications module of our website.

Related studies from the Business and Labour Market Analysis Division can be found at Update on Analytical Studies Research (11-015-XIE, free), which is also available on our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact John Myles (416-946-5886), Business and Labour Market Analysis Division.