AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Distributional Impacts of the Canada-US Free Trade Agreement
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 585–89)
Abstract
We examine the effects of the 1988 Canada-US Free Trade Agreement (FTA) on employment and earnings inequality among low-, medium-, and high-income Canadian workers initially employed in manufacturing. Although the FTA tariff cuts drove large changes in trade flows, we find generally small effects on employment and cumulative earnings during 1989–2004. Workers faced negative effects of import competition and positive effects of access to the US export market, but these effects were largely offset by transitions into other industries and sectors. The effect on earnings inequality was small, with point estimates implying a slight reduction in earnings inequality.Citation
Kovak, Brian K., and Peter M. Morrow. 2023. "Distributional Impacts of the Canada-US Free Trade Agreement." AEA Papers and Proceedings, 113: 585–89. DOI: 10.1257/pandp.20231078Additional Materials
JEL Classification
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- F15 Economic Integration
- F16 Trade and Labor Market Interactions
- J31 Wage Level and Structure; Wage Differentials