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The present analysis seeks to examine whether the 2008 recession had a differential impact on Aboriginal as compared to non-Aboriginal Canadians as measured by the differences in the probability of unemployment between the two groups. Specifically, the present study tests two hypotheses: 1- Aboriginal people have been disproportionately burdened by the Great Recession as compared to non-Aboriginal people, and as a consequence; 2- Aboriginal people are more likely than non-Aboriginal people to be discouraged workers. The study uses data obtained from the master files of the Canadian Labour Force Survey for the years 2007 to 2012 inclusive to estimate the probability that an individual is unemployed based on a set of observable characteristics for a sample of labour force participants. The methodology begins by estimating a pooled model across all years, which includes controls for Aboriginal identity. Secondly, individual models of the probability of unemployment are estimated for each year for Aboriginal and non-Aboriginal labour force participants. The difference in the probability of unemployment from pooled models estimated separately for Aboriginal and non-Aboriginal peoples are decomposed to reveal the proportion of the gap that is due to differences in observable characteristics between the two groups and the amount of the gap that is attributable to differential returns to those characteristics. To investigate the second hypothesis, the study estimates the probability that a respondent is a discouraged worker based on the entire sample of both economically active and inactive persons (i.e. labour force participants and well as those not in the labour force). The results of both the pooled and individual models of the probability of unemployment support the first hypothesis, that Aboriginal peoples were disproportionately burdened by the 2008 recession as seen in higher and more enduring probabilities of unemployment. By the 2012, estimated unemployment rates had roughly returned to their pre-recessionary levels for Aboriginal and non-Aboriginal respondents with strongest labour force attachments. When individuals with weaker labour force attachments (i.e. those who have been unemployed for more than twelve months) are included in the analysis, the gap between the probability of unemployment for Aboriginal and non-Aboriginal persons widens. Furthermore, the second hypothesis, that Aboriginal people are more likely to be discouraged workers, was supported, as Aboriginal people were more likely to be discouraged workers in 2008-2010 and 2012.
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This dissertation is divided into three main components that each relate to the socioeconomic wellbeing of Aboriginal peoples in the Canadian labour market. Specifically, using data from the master file of the Canadian census for the years 1996, 2001 and 2006, the first section examines the wage differential for various Aboriginal and non-Aboriginal groups, including a comparison of those living on-and-off-reserves. The study finds that, while a sizeable wage gap between Aboriginal and non-Aboriginal persons still exists, this disparity has narrowed over the three census periods for those living off-reserve. The Aboriginal-non-Aboriginal wage differential is largest among the on-reserve population and this gap has remained relatively constant over the three census periods considered in the study. The second study in the dissertation uses data from the master file of the Canadian Labour Force Survey for 2008 and 2009 to estimate the probability that an individual is a labour force participant, and, conditional on labour force participation, the probability that a respondent is unemployed, comparing several Aboriginal and non-Aboriginal groups. The results reveal that Aboriginal men and women have lower rates of labour force participation and higher rates or unemployment in both periods as compared to their non-Aboriginal counterparts. Aboriginal peoples were also disproportionately burdened by a slowdown in economic activity as measured by a change in the probability of unemployment moving from 2008 to 2009, as compared to non-Aboriginal people, who experienced a smaller increase in the probability of unemployment moving from a period of positive to negative economic growth. Finally, the third study examines the probability of high school dropout comparing Aboriginal peoples living on-and-off-reserve using data from the master file of the Aboriginal Peoples Survey for 2001. The findings reveal dramatically higher rates of dropout among Aboriginal people living on-reserve as compared to those living off-reserve. Limitations of all three studies as well as some possible directions of future research related to similar issues concerning Canada's Aboriginal population are discussed in the concluding chapter of the dissertation.
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Using data from the 2011 National Household Survey, the present analysis seeks to provide a recent estimate of aboriginal/non-aboriginal earnings disparities for a sample of employees who work full-time, full-year. Wage gaps are estimated and decomposed at the mean for several aboriginal identity groups as well as those living on- and off-reserves. consistent with previous research, the results of the present analysis find earnings disparities are, in general, larger for aboriginal identity respondents (i.e. those who identify themselves as aboriginal persons), as opposed to those who report having aboriginal ancestry, but who do not identify as aboriginal persons. among aboriginal identity groups living off-reserve (First Nations, Métis and Inuit), First Nations experience the largest earnings inequality, followed by Inuit males and Métis. aboriginal identity respondents living on-reserve experience by far the largest earnings disadvantage of all the groups considered in the analysis. the study concludes by discussing the implications of the findings for future research, with an emphasis on the importance of addressing the potential role of discrimination in labour markets.
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