A new look at variation in employment growth in Canada: The role of industry,provincial, national and external factors |
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| Institution: | 1. Department of Management, University of Toronto Scarborough, Canada;2. Centre for Industrial Relations, University of Toronto, Canada;3. Department of Economics, University of Leicester, United Kingdom;4. Department of Economics, University of Strathclyde, United Kingdom;1. Proyecto Colaborativo Internacional Donante, España;2. Unidad de Trasplantes, Hospital Clínico Universitario Virgen de la Arrixaca, Murcia, España;3. Departamento de Cirugía, Universidad de Murcia. España;4. Departamento de Psicología, Universidad Católica de Murcia, España;5. Escuela de Medicina de la Universidad de Quetzalcoatl en Irapuato, México;1. Medical School, Estácio de Sá University, Rio de Janeiro, RJ, Brazil;2. Estácio de Sá University, Rio de Janeiro, RJ, Brazil;3. University Hospital of Federal University of Rio de Janeiro, Rio de Janeiro, RJ, Brazil;1. Université du Québec à Montréal, Canada;2. CIRPÉE, Canada;3. TSE, University of Toulouse I-Capitole, GREMAQ, IDEI and IUF, GREMAQ-Université de Toulouse I, manufacture des Tabacs, bât. F, 21 allée de Brienne, 31000 Toulouse, France;4. CIRPÉE and CIREQ, Canada |
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| Abstract: | We examine fluctuations in employment growth using Canadian data from 1976 to 2010. We consider a wide range of models and examine the sensitivity of our findings to modelling assumptions. The results from our most preferred model, which we selected using the Bayesian Information Criteria, indicate that most of the variance in employment growth that is not due to the idiosyncratic error comes from domestic sources, with most of this coming from industry and provincial factors. Overall, we find that external and national factors play a much smaller role in employment fluctuations than in earlier research. We provide some possible explanations for these differences and discuss the implications of our findings for public policy and theory. |
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| Keywords: | Employment fluctuations Dynamic factor model Disaggregated shocks Domestic shocks External shocks |
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