Wage changes in a sample (1979-86) of Canadian wage contracts are analyzed. The sample is split into cost-of-living allowance (COLA) and non-COLA contracts. Econometric estimation corrects for sample selectivity bias. In non-COLA contracts, the unemployment rate and a proxy for expected...

This paper extends the work of Gunderson and Shapiro and Stelcner that considered wage differentials between public and private sector workers in Canada using the 1971 and 1981 Censuses, respectively. Here the Survey of Consumer Finances from 1991 and 1982 is used, which allows for better...