In the last three decades, Canada and the US showed different paths in per capita GDP growth, skill premiums and inequality. Both firm and worker productivity differences play a role and have different policy implications, but are difficult to distinguish. To examine separate firm and worker...

The canonical supply{demand model of the wage returns to skill has been extremely in uential; however, it has faced several important challenges. Several studies show that the standard approach sometimes produces theoretically wrong-signed elasticities of substitution, yields counterintuitive...