Using an extraordinary database drawn from longitudinal income tax records, we decompose Canada's growth in earnings inequality into its persistent and transitory components. We find that the growth in earnings inequality reflects both an increase in long-run inequality and an increase in...

A simple microeconomic foundation is provided for a Tobit model of consumer demand subject to corner solutions.

A comparison of the correlations between brothers and neighboring boys in their adult earnings suggests that the earnings resemblance between brothers stems more from growing up in the same family than from growing up in the same neighborhood. Much of the neighbor correlation is explicable in...

The authors examine the effects of minimum wage legislation in Canada over the period 1975-93. For teenagers we find that a 10 percent increase in the minimum wage is associated with roughly a 2.5 percent decrease in employment. They also find that this result is driven by low frequency...

We examine the (sequential) introduction of early retirement provisions to Canada's two public pension plans. These reforms provide a unique opportunity to assess the effect of public pension plan parameters on labor supply behavior, free of the biases that potentially affect the simple...