Does Industrial Mix of Employment Influence Poverty Rates in Canadian Counties?

Abstract

This study examines the effect of changes in the industrial composition of employment, a change in the “industrial mix”, on the prevalence of poverty across Canadian counties. Regression analysis suggests shifts in the proportion of employment to high-wage industries reduce poverty rates. This finding contradicts some previous literature, which argued that job growth in high-wage industries would not reduce poverty rates because these jobs are not available to low-skilled workers.