Abstract
Abstract. In this paper, I use Canadian micro‐data on individual workers to investigate the effect on wages of the tariff reductions mandated by the Canada‐U.S. Free Trade Agreement (CUSFTA). The literature on industry wage premia has revealed that the industry of employment is an important determinant of a worker's wage. My findings indicate that relative wages fell in those industries that faced the deepest tariff cuts. This effect was experienced regardless of whether or not workers belonged to a union, suggesting that CUSFTA reduced the returns to industry‐specific human capital for those workers in the mostly heavily affected industries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Canadian Journal of Economics/Revue canadienne d'économique
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.