This paper provides some of the first empirical evidence on labour market adjustments to exchange rate movements in Canadian manufacturing industries. Controlling for endogeneity using generalized method of moments estimation, it is found that during the 1981–1997 period, exchange...

Using industry-level data for Canadian manufacturing industries from 1981 to 1997, we find empirical evidence of a negative relationship between the capital-labour ratio and the user cost of capital relative to the price of labour. A 10% increase in the user cost of the Machinery and Equipment...

Previous U.S. panel estimates of minimum wage effects have been criticized on the grounds that their identification rests on comparisons of ‘‘low-wage’’ and ‘‘high-wage’’ workers. Using Canadian panel data for 1988–90, I compare estimates based on the traditional U.S....