Vol. 27 No. 1 March/mars 2001

Technological Change, the Demand for Skills, and the Adequacy of their Supply
Michael R. Smith

There is a wide consensus that economic performance rests on a suitably trained labour force. There is dispute over whether or not recent technological change has increased the demand for skills.There is also dispute over whether or not the Canadian education and training systems deliver adequate supplies of needed skills.

This paper examines the evidence bearing on these competing positions, then goes on to draw some implications from the debate for the use of academic research in policy debate.

The Market Worth of Immigrants' Educational Credentials
Peter S. Li

Despite academic and policy interests on immigrants' credentials, their precise market worth is unclear. This study uses the 1996 Canadian Census microdata to compare the earnings for four groups: native-born Canadian degree-holders; immigrant Canadian degree-holders; immigrant mixed education degree-holders; and immigrant foreign degree-holders. The findings indicate that immigrants' credentials carry a penalty compared to those of native-born Canadians, and that a foreign degree affects visible-minority immigrants, women and men, more adversely than white Canadians; as well, credential holders' gender and race are also being evaluated. Policies to recognize foreign credentials will bridge some income disparities, but inequality premised upon gender and race will likely remain.

Measuring Government Growth in the Canadian Provinces: Decomposing Real Growth and Deflator Effects
Louis M. Imbeau, François Pétry, Jean Crête, Geneviève Tellier and Michel Clavet

In this paper, we argue that, when measuring government growth, we should distinguish among three growth phenomena: growth resulting from the broader scope of government activity, referred to as real growth; growth that results from higher costs of providing government goods and services, referred to as deflator effect; and growth in the simple ratio of government expenditure to gross domestic product (GDP), nominal growth, which is due to the combined impact of real growth and deflator effect. Using data on provincial government spending, we show that, over the 1971-95 period, there has been no real growth in three provinces and that there has been a substantial deflator effect on provincial government growth in all ten provinces.

Redesigning Employment Equity in Canada: The Need to Include Men Cristina Echevarria and Mobinul Huq

This paper recommends that the goal of employment equity be stated in terms of "achieving an integrated workplace" instead of in terms of "hiring and promotion of the members of the target groups." It argues that some type of employment equity is needed to increase male employment in female-dominated occupations. The paper shows that a significant number of occupations in Canada are female-dominated. Through a case study of the University of Saskatchewan, it shows that the policy in its current state is not achieving an integrated workplace. Finally, it discusses a number of additional benefits of the recommended policy change.

A Proposal to Reduce the Age Discrimination in Canadian Minor Hockey
William Hurley, Dan Lior and Steven Tracze

There is strong relationship between birthmonth and the chance that a Canadian minor hockey player will play at an elite level. Players born in the early months of the year have an advantage. This is generally attributed to the slotting system: the way in which minor hockey groups players into age divisions. In this paper we first review the evidence. We then argue that there is more to the explanation of this relative age effect than just the slotting system; it also depends on early streaming (i.e., the partitioning of players into representative and house league teams). We suggest a more equitable slotting system, and finally, we discuss public policy implications.

Critical Essays on Canadian Public Policy

Policies to Stem the Brain Drain - Without Americanizing Canada
Jonathan R. Kesselman

Call for Canadian policies to respond to the threat of brain drain to the United States often ignore the factors that have retarded such outflows to date. This study offers a holistic view of individual decisions to migrate. Most people care about the public services they receive as well as the taxes they pay, and many also care about the civic nature of the society they inhabit as well as the goods they can purchase privately. This perspective influences the assessment of policies as diverse as taxation, income security, public health and education, regional incentives, and social investments. A key finding is that Canadian policies should be driven by domestic objectives of equity, efficiency, and growth rather than stemming emigration or mimicking American policies. Canadian policies to spur sustained economic growth for the benefit of all Canadians should take care not to compromise the social, civic, and cultural attributes that distinguish Canada.

How to Organize Science Funding: The New Canadian Institutes for Health Research, an Opportunity to Increase Innovation
Bryan J. Poulin and Richard Gordon

Why are Bell, 3M and the intramural program at the US National Institutes of Health (NIH) so successful at inspiring innovation? How does the Medical Research Council of Canada (MRC) compare and conflict with innovation in these examples? Will the existing and proposed structure and culture of the new Canadian Institutes for Health Research (CIHR), which are replacing MRC, produce relatively little innovation from the outset? Our examination leads to recomendations for an alternative funding system and organizational structure for CIHR: minimal structure with baseline funding at the initial, idea stage (40 percent of budget); more formal structure and competitive funding at the feasibility stage (50 percent); and matching industrial grants for the commercialization stage (10 percent). Our alternative CIHR budget would permit baseline grants of approximately $20,000/year for each of 10,000 qualified medical investigators, 8,000 more than presently funded.

 


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