Effects of Wage Parity between Canada and the United States on Canadian Economic Growth: Simulation Experiments with a Macro Model
This paper talks about the wage-parity issue which arose in 1968 when the United Auto Workers demanded wage-parity between Canadian and American workers in the automobile industry. Also, if wage-parity is introduced, what and how severe will be its effects on the prices and on Canadian economic growth. The present paper attempts to give some answers to this question.