Understanding Regional Differences in Work Hours
by Andrew Heisz and Sébastien Larochelle-Côté
Business and Labour Market Analysis Division
Analytical Studies Branch Research Paper Series, No. 293
Context
In recent years, differences in working hours between Canada and other countries have been the focus of a substantial body of research. Much less attention has been paid to regional differences in work hours, although differences in average annual work hours between some regions are of an order of magnitude that is similar to that of the Canada-U.S.
Objective(s)
This study examines how much of differences in working time between Ontario and five other regions of Canada can be explained by 'observable' differences, including differences in union status, industrial structure, job conditions and demographic characteristics.
Findings
Those 'observables' differences were relatively efficient in explaining differences in the shares of individuals working a short year and working a full-year, full-time schedule. However, they were not very helpful in explaining differences in long work hours, did not entirely explain the larger share of short-year workers in the Atlantic and in British Columbia, and did not explain the huge popularity of the 'low' full-year, full-time schedule in Quebec. These differences that remain unexplained suggest that 'unobservable' factors (those that are difficult to observe in household surveys) also contribute to regional differences in work hours. These include incentives related to wage inequality, possible tax incentives (or disincentives) built upon progressive taxation policies, differences in job conditions, in preferences and tastes, and in the shape of institutions.
Data source(s)
The paper uses data from the 2004 Survey of Labour and Income Dynamics (SLID).
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