Three Policies to Improve Productivity Growth in Canada



38

division migration rate is likely a more relevant comparison between mobility in the two
countries because divisions are much closer in size to provinces than states. This rate was
1.41 per cent in 2005, 48 per cent above the Canadian rate. Even the mobility rate
between the four US regions, at 1.08 per cent, was 14 per cent above the mobility rate for
Canada’s ten provinces. It would thus appear that workers in the United States are
significantly more mobile than their counterparts in Canada. This geographical mobility
can be considered a source of labour market flexibility and dynamism and may contribute
somewhat to the lower US unemployment rate.

Summary Table 5: Total Gross Migration and Total Net Migration, 1987-2005
(persons)

Total Gross
Migration

As a % of the
Total Population

Total Net Migration
to Positive Balance
Provinces

As a % of the
Total Population

1987

306,410

1.16

57,126

0.22

1988

311,501

1.17

40,639

0.15

1989

335,707

1.23

40,592

0.15

1990

320,900

1.16

50,066

0.18

1991

304,105

1.09

40,831

0.15

1992

297,868

1.05

40,511

0.14

1993

273,145

0.96

37,336

0.13

1994

276,222

0.96

34,532

0.12

1995

276,100

0.95

27,751

0.10

1996

274,115

0.93

32,428

0.11

1997

280,719

0.94

39,770

0.13

1998

286,380

0.95

49,833

0.17

1999

266,690

0.88

38,132

0.13

2000

280,645

0.92

46,619

0.15

2001

271,371

0.88

34,906

0.11

2002

271,738

0.87

22,622

0.07

2003

247,230

0.78

14,835

0.05

2004

260,532

0.82

26,216

0.08

2005

304,991

0.95

54,404

0.17

2006

370,791

1.14

69,740

0.21

1987-2006

290,858

0.99

39,944

0.14

Source: Table 6

2) Productivity gains from geographical mobility

For many reasons, estimation of the productivity gains from geographic mobility
is extremely complex. A full discussion of the issue is well beyond the scope of this
paper. Using two very crude methodologies, this paper does present two estimates of the
output and productivity gains arising from interprovincial migration in Canada.26 The

26 The gains arising from intraprovincial migration are ignored. Intraprovincial migration in large provinces
such as Ontario and Quebec is very significant. The 2001 census estimates that the rate of one-year



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