Journal Article

Panel Estimates of the Canadian Rural/Urban Women's Wage Gap

Esperanza Vera-Toscano, Euan Phimister and Alfons Weersink

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 86, issue 4, pages 1138-1151
Published in print November 2004 | ISSN: 0002-9092
Published online November 2004 | e-ISSN: 1467-8276 | DOI: https://dx.doi.org/10.1111/j.0002-9092.2004.00659.x

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This article analyzes the female rural-urban wage gap in Canada using longitudinal data from the Survey of Labour and Income Dynamics 1993–96. We estimate a two-step wage equation accounting for unobserved heterogeneity and sample selection. The results indicate that a statistically and economically significant rural-urban wage gap remains after controlling for observed and unobserved characteristics. Further, the results suggest this rural-urban wage difference is not simply induced by immobility between rural and urban markets. Rather, consistent with the effect of thinner rural labor markets, the evidence indicates that rural-urban differences in the impact of a number of explanatory variables are significant.

Keywords: Canada; female wage gap; rural labor markets; sample selection; unobserved heterogeneity; J160; J310; R230

Journal Article.  7330 words.  Illustrated.

Subjects: Demographic Economics ; Wages, Compensation, and Labour Costs ; Household Analysis