Labour Mobility In Canada

Introduction
Labor mobility is the key to understanding the dynamics of labor markets (see Friedman, 1968). Economies with diverse resources, different structures of industries and labor forces trigger labor mobility across regions. The diversity of these regional economic activities can be represented by regional unemployment rates and weighted employment growth rates: two measure of local market conditions (LMC). For example, seminal work of Blanchard and Katz (1992) investigates the U.S. state-level data and provide an extensive time series analysis on the inter-relatedness of mobility and the local labor market conditions. They show that that labor mobility is the dominant adjustment mechanism to the response of change in local market conditions.
Local market condition is influenced by both provincial and federal policies. Economic prosperity of a nation is founded by local economic development and demonstrate the influence on total national progress of the country. Industry growth of Canada is not similar across provinces and central and western Canada are more vibrant in terms of giving economic signals to the whole economy. Economic development is not limited to job opportunities but extend to various socioeconomic benefits as well. Diversified economic and social differences among provinces bring into provincial mobility and different education and age groups have diverse responses to different provincial economic and social development. In this paper local market condition is represented by provincial unemployment rate and Bartik Index (1991), which is a weighted employment growth from different industries for each
For example, recent work by Machin, Malamud and Wozniak (2012) using the U.S. data shows that education has a large casual effect on mobility. Finnie (2004 and 2000) and Robinson & Tomes (1982), and Chen et al. (2008) find that young individuals are more mobile across provinces in Canada.
In Canada, the impact of local market condition on inter-provincial mobility across different education and age groups is not explained properly. In addition, the effect of LMC of both original and destination province on provincial migration provides a new direction in the study of labor mobility in Canada. Moreover, estimation of one to five year frequency of mobility also contributes to empirical advances of analysis of provincial mobility in Canada. The wage impact across different educational and age groups between movers and stayers is also an important addition in this