The impact of international
trade on the wages of Canadians
by Omar Zakhilwal
Business and Labour
Market Analysis Division
Analytical Studies Branch research paper series, No.
156
Developments in the relative wages of more and less educated workers
during the early 1990s are examined using the Survey of Labour and Income Dynamics.
Particular attention is paid to the role of international trade in determining
the wage differential between workers with post-secondary certification and those
without.
It is shown that in the absence of the relatively greater growth
in the supply of more educated workers, the gap between the wages of more and
less educated workers would have increased. After controlling for some of the
most likely influences on real wages it is found that international trade has
a significant positive impact on the wages of both more and less educated workers.
However, the impact on the more highly educated seems to be some four times stronger,
roughly the same as the impact of technological change.
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