Understanding developments in individuals' earnings dispersion in Canada using matched employer-employee data / by Kar-Fai Gee, Huju Liu and Carlos Rosell. : CS11-0019/444E-PDF

"This paper presents developments in the dispersion of individuals’ earnings in Canada and examines the potential of firm characteristics to account for this dispersion and changes in this dispersion. This paper uses the Canadian Employer–Employee Dynamics Database from 2001 to 2013 and shows that the overall earnings dispersion declined slightly over this time period, as the increasing dispersion in the top half of the distribution was offset by convergence in the bottom half. The increasing dispersion in the top half of the distribution is mostly attributable to the earnings of individuals in firms with 500 or more employees, while the decreasing dispersion in the bottom half occurred for workers in firms of all sizes. Evidence suggests that the rise in the minimum wage played a role in the decline in dispersion. Lastly, while both changes in earnings between industries and changes in the dispersion of productivity have an impact on the dispersion of individuals’ earnings, it has been found that the earnings dispersion within firms accounts for most of the dispersion in any given year and for all of the change across time"--Abstract.

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