Vol. 26 No. 4 December/décembre 2000:

Real Income, Unemployment and Subjective Well-Being: Revisiting the Costs and Benefits of Inflation Reduction in Canada
Roderick Hill

The benefits of disinflation have often been thought of as the discounted value of the net income increases that might result. This weighs lower incomes from higher short-term unemployment against expected long-term income increases.

Such measures of economic welfare typically find large net gains from disinflation. However, studies of subjective well-being show that this overstages gains in individuals' well-being because unemployment has significant non-monetary costs, while higher average incomes may not be associated with significant increases in average well-being. A simulation of the 1990s disinflation in Canada shows that a net loss in average well-being could result. Only if lower inflation raises well-being directly are significant net gains possible.

Maternity and Parental Benefits in Canada: Are there Behavioural Implications?
Shelley A. Phipps

This paper uses micro data from the 1988/89/90 Labour Market Activities Survey to study some behavioural implications of the Canadian maternity/parental benefits system. We find, first, that fertility behaviour is not significantly influenced by the availability of benefits, and, second, that there is no evidence that women adjusted their labour-supply behaviour in order to gain access to benefits. We also examine who is potentially eligible for maternity/parental benefits. Teenaged new mothers, women with little education and those experiencing difficulty in the labour market are less likely to be eligible. Given the evidence on lack of significant behavioural response, it would thus seem reasonable to ease access to these benefits.

Licensing Sex Work: Public Policy and Women's Lives
Jacqueline Lewis and Eleanor Maticka-Tyndale

The population health promotion model directs our attention to the impact of public policy, and the interface between various levels of policy, on health and well-being. This model is applied in a case study of the effect of municipal licensing of the escort industry on the health and well-being of escorts in Windsor, Ontario. Attention to municipal licensing and policing practices applied to the escort industry reveals that although the potential exists for such policies to enhance the health and well-being of sex workers, as such policies currently operate in Windsor, they are not healthy public policies. This is in part because of the way police use the information and resources made to them through licensing. It is also related to the ambiguous position in which municipalities and escort agencies are placed, in order to implement licensing without violating federal criminal statutes related to prostitution.

The Effect of the Harmonized Sales Tax on Consumer Prices in Atlantic Canada
David Murrell and Weiqiu Yu

This paper examines the effect of the Harmonized Sales Tax (HST) on consumer prices for the three participating Atlantic Canada provinces from April 1997 to March 1999. Using aggregate and disaggregate (eight-components) consumer price index (CPI) data, we conduct counter-factual analysis and find that, ceteris paribus, while the consumer price index for overall items fell slightly during the first two years of the HST, the change in the components of the CPI varies substantially from one category to another.

Issues and Commentaries

An Analysis of the Canadian Information Techology Labour Market
Nicole Haggerty and Scott Schneberger

Applied information technology (IT) is credited with ushering in a new era - the information era - delivered by specialized information technology labour. In spite of industry reports of information technology labour market shortages over the past 15 years, some Canadian government reports give no evidence of an IT labour shortage now or in the near future. This paper examines these conflicting reports by discussing them in the context of labour economic theory. The results support the notion of a national IT labour shortage relative to the general Canadian labour market and they highlight deficiencies in IT labour market information. Policy implications of the findings are discussed.

Constructing "Ethnic Canadians": The Implications for Public Policy and Inclusive Citizenship
Yasmeen Abu-Laban and Daiva Stasiulis

Rejoinder to Rhoda Howard-Hassmann Rhoda E. Howard-Hassmann

Rebuttal to Abu-Laban and Stasiulis

 


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