Small Differences That Matter
Labor Markets and Income Maintenance in Canada and the United States
-Canada's social safety net, more generous than the American one, produced markedly lower poverty rates in the 1980s.
-Canada saw a smaller increase in earnings inequality than the United States did, in part because of the strength of Canadian unions, which have twice the participation that U.S. unions do.
-Canada's unemployment figures were much higher than those in the United States, not because the Canadian economy failed to create jobs but because a higher percentage of nonworking time was reported as unemployment.
These disparities have become noteworthy as policy makers cite the experiences of the other country to support or oppose particular initiatives.