Local Labor Markets in Canada and the United States

Abstract

from the Canadian Centre for Data Development and Economic Research for their assistance with the Canadian business micro data. The results have been institutionally reviewed to ensure that no confidential information is revealed. The U.S. Census data comes from the IPUMS-USA, University of Minnesota, www.ipums.org (Ruggles et al., 2015). All errors are our own.

Why Has Urban Inequality Increased?

“…These locations may have experienced more rapid increases in factor-unbiased agglomeration economies, unskilled-biased agglomeration economies, or declines in the relative supply of unskilled labor. Once these price effects are held constant, a more direct agglomeration mechanism becomes clearer, as can be seen in (4). Holding factor prices constant and provided that 0 < ρ < 1 (i.e., that capital and unskilled labor are sufficiently substitutable), an increase in the capital bias of agglomeration forces increases relative capital intensity, whereas an increase in their unskilled bias decreases relative capital intensity, as is intuitive.…”

“…In particular, we assign exp ( X it β ˆ 1980 g ) efficiency units of labor to each hour worked by individual i in year t in broad skill group g . 4 We maintain the 1980 weights β 1980 S and β 1980 U for later years to prevent these weights from changing endogenously in response to changes in labor market conditions and to facilitate the estimation of changes in productivities. This amounts to assuming that the quantity of efficiency units of labor provided by each observed skill group within each broader skill classification does not change over time.…”

“…We only keep those with imputed education for the purpose of constructing aggregate quantities, not skill prices. This exclusion has a negligible effect on results 4. Technically, we should also take into account the Jacobian transformation component from the prediction uncertainty.…”

Identifying Chinese supply shocks: Effects of trade on labor markets

“…In the subsequent paragraph, the authors reiterate their interpretation of the coefficient in exactly that manner. 55 See, for example, Ashournia et al (2014), Balsvik et al (2015), Dauth et al (2014), Autor et al (2014Autor et al ( , 2019Autor et al ( , 2020, Malgouyres (2017), Bloom et al (2019) and Albouy et al (2019). 56 For the more general case, where E is a function of prices, see Auer and Schoenle (2016).…”

FEAR Index, city characteristics, and housing returns

“…The Bartik method was popularized by Blanchard and Katz (1992), who argue that wages and worker migration cause unemployment effects of demand shifts to disappear over the long run. We obtain the data for labor demand shocks from Albouy, Chernoff, Lutz, and Warman (2019). They use the County Business Patterns (CBP) data set from the United States Bureau of the Census to construct the Bartik labor demand shocks.…”