The effects of interprovincial mobility
on individuals' earnings: panel model estimates for Canada
by Ross
Finnie
Business and Labour Market Analysis Division
Analytical Studies Branch
research paper series, No. 163
This paper presents the findings of an empirical
investigation of the effects of inter-provincial migration on individuals'
earnings based on the Longitudinal Administrative Database ("LAD").
The main results are based on a difference model which estimates the effects of
mobility on (log) earnings which implicitly controls for initial earnings levels
and other fixed effects, as well as other influences captured by the regressors
included in the models.
Inter-provincial mobility is found to be associated
with statistically significant and in many cases quantitatively substantial changes
in individuals’ earnings, with these effects varying by age, sex, and province
of origin. Pre- and post-move earnings profiles are also analysed, offering support
for the validity of the difference model approach and indicating that movers are
quickly integrated into local labour markets after their moves. Implications are
discussed and possible directions for future research are suggested.
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the full publication.
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