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Are Canada's Labour Standards Set in the Third World?
註釋The tendency toward convergence broke down in the mid-1980s, a development that I trace to the change in the trade environment measured by the increase in the degree of international economic integration. [...] On the demand side, changes in the composition of the labour force and changes in income and tastes have led to new forms of regulation. [...] In the 50 years after Confederation, the demarcation between provincial and federal jurisdiction was ambiguous because of the common origins of labour legislation, the imperial tradition, and the marked tendency of provinces to follow Ottawa's lead in any event. [...] The explanation I pursue is based on the observation that convergence in labour standards was associated with the stable trade environment, defined as the degree of openness, and that divergence coincided with a change in this environment - the 50-percent increase in trade flows between the 1970s and 1990s.15 My argument turns on the political economy models of Bagwell and Staiger (2000) and Brown [...] The decision to raise the minimum wage, for example, balances the increase in the wage bills of companies, as young and unskilled workers are forced out of the labour market, against the perceived 14 On emulation and expermentation in social policy, see Mukand and Rodrik (2002).