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Canadian Public Policy Labour Market Development in the 1980s by Task Force on Labour Market Development Review by: A. Leslie Robb Canadian Public Policy / Analyse de Politiques, Vol. 9, No. 1 (Mar., 1983), pp. 145-146 Published by: University of Toronto Press on behalf of Canadian Public Policy Stable URL: http://www.jstor.org/stable/3550766 . Accessed: 15/06/2014 08:57 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . University of Toronto Press and Canadian Public Policy are collaborating with JSTOR to digitize, preserve and extend access to Canadian Public Policy / Analyse de Politiques. http://www.jstor.org This content downloaded from 185.44.77.128 on Sun, 15 Jun 2014 08:57:04 AM All use subject to JSTOR Terms and Conditions

Labour Market Development in the 1980sby Task Force on Labour Market Development

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Canadian Public Policy

Labour Market Development in the 1980s by Task Force on Labour Market DevelopmentReview by: A. Leslie RobbCanadian Public Policy / Analyse de Politiques, Vol. 9, No. 1 (Mar., 1983), pp. 145-146Published by: University of Toronto Press on behalf of Canadian Public PolicyStable URL: http://www.jstor.org/stable/3550766 .

Accessed: 15/06/2014 08:57

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

University of Toronto Press and Canadian Public Policy are collaborating with JSTOR to digitize, preserveand extend access to Canadian Public Policy / Analyse de Politiques.

http://www.jstor.org

This content downloaded from 185.44.77.128 on Sun, 15 Jun 2014 08:57:04 AMAll use subject to JSTOR Terms and Conditions

apprenticeship programs. Women and the Chip is a particularly signifi-

cant contribution for two fundamental reasons.

First, it accepts the inevitability of technological advance and the resulting change in job patterns for women. Rather than fighting the trend, the author adopts the constructive approach of an-

ticipating potential problems and suggesting processes for dealing with them 'to ensure that what should be simply a mobility problem does not deteriorate into a crisis of structural

unemployment'. The result is a powerful warn-

ing. Second, the study's conclusions, which are

presented in an appropriately cautious manner, are based on analysis of both the macro picture and case examples. Both research methodologies are required to assess the significance and im-

plications of the introduction of new technology on job patterns.

GAIL C.A. COOK, Bennecon Ltd.

On Balancing the Budget by Michael Walker. Vancouver, The Fraser Insti-

tute, 1982. Pp.45.

This brief pamphlet is very much in the neo-

conservative spirit of other Fraser Insitute

publications. The current deficit is much too

high and hides the true tax cost of government. Much of the deficit is attributable to uncontrol-

led expenditures and, to correct for that, the

author proposes a new method of planning

public expenditures. The 'core' of a depart- ment or program would be financed out of last

year's revenue allocation and any expansion would be financed out of the current increase in revenue. In addition the paper claims that

deficits have contributed to higher inflation by

monetizing the debt or have crowded out private

spending by forcing up interest rates.

Unfortunately, the key points in the debate

about deficits and deficit financing are accorded

only limited coverage. The impact of inflation on real debt, the desirability of financing public

capital expenditures by borrowing, the degree of debt monetization and the limited probabili-

ty of crowding out due to high levels of liquidity must be directly challanged if the conclusions of this paper are to stand.

apprenticeship programs. Women and the Chip is a particularly signifi-

cant contribution for two fundamental reasons.

First, it accepts the inevitability of technological advance and the resulting change in job patterns for women. Rather than fighting the trend, the author adopts the constructive approach of an-

ticipating potential problems and suggesting processes for dealing with them 'to ensure that what should be simply a mobility problem does not deteriorate into a crisis of structural

unemployment'. The result is a powerful warn-

ing. Second, the study's conclusions, which are

presented in an appropriately cautious manner, are based on analysis of both the macro picture and case examples. Both research methodologies are required to assess the significance and im-

plications of the introduction of new technology on job patterns.

GAIL C.A. COOK, Bennecon Ltd.

On Balancing the Budget by Michael Walker. Vancouver, The Fraser Insti-

tute, 1982. Pp.45.

This brief pamphlet is very much in the neo-

conservative spirit of other Fraser Insitute

publications. The current deficit is much too

high and hides the true tax cost of government. Much of the deficit is attributable to uncontrol-

led expenditures and, to correct for that, the

author proposes a new method of planning

public expenditures. The 'core' of a depart- ment or program would be financed out of last

year's revenue allocation and any expansion would be financed out of the current increase in revenue. In addition the paper claims that

deficits have contributed to higher inflation by

monetizing the debt or have crowded out private

spending by forcing up interest rates.

Unfortunately, the key points in the debate

about deficits and deficit financing are accorded

only limited coverage. The impact of inflation on real debt, the desirability of financing public

capital expenditures by borrowing, the degree of debt monetization and the limited probabili-

ty of crowding out due to high levels of liquidity must be directly challanged if the conclusions of this paper are to stand.

apprenticeship programs. Women and the Chip is a particularly signifi-

cant contribution for two fundamental reasons.

First, it accepts the inevitability of technological advance and the resulting change in job patterns for women. Rather than fighting the trend, the author adopts the constructive approach of an-

ticipating potential problems and suggesting processes for dealing with them 'to ensure that what should be simply a mobility problem does not deteriorate into a crisis of structural

unemployment'. The result is a powerful warn-

ing. Second, the study's conclusions, which are

presented in an appropriately cautious manner, are based on analysis of both the macro picture and case examples. Both research methodologies are required to assess the significance and im-

plications of the introduction of new technology on job patterns.

GAIL C.A. COOK, Bennecon Ltd.

On Balancing the Budget by Michael Walker. Vancouver, The Fraser Insti-

tute, 1982. Pp.45.

This brief pamphlet is very much in the neo-

conservative spirit of other Fraser Insitute

publications. The current deficit is much too

high and hides the true tax cost of government. Much of the deficit is attributable to uncontrol-

led expenditures and, to correct for that, the

author proposes a new method of planning

public expenditures. The 'core' of a depart- ment or program would be financed out of last

year's revenue allocation and any expansion would be financed out of the current increase in revenue. In addition the paper claims that

deficits have contributed to higher inflation by

monetizing the debt or have crowded out private

spending by forcing up interest rates.

Unfortunately, the key points in the debate

about deficits and deficit financing are accorded

only limited coverage. The impact of inflation on real debt, the desirability of financing public

capital expenditures by borrowing, the degree of debt monetization and the limited probabili-

ty of crowding out due to high levels of liquidity must be directly challanged if the conclusions of this paper are to stand.

Labour Market Development in the 1980s a report of the Task Force on Labour Market

Development. Ottawa, Minister of Supply and Services Canada, 1981. Pp.243.

This publication is the product of a task force on labour market development set up by the Minister of Employment and Immigration. The task force was established in July 1980 and the document was released in July 1981. In terms of resources devoted and subject matter covered, this was a massive operation (over three dozen studies were commissioned by the task force and a large number of professionals were employed internally). While mounting such a massive pro- gram in such a short time frame may have made

good political sense, most labour market analysts would probably not have expected too much from such an exercise and they would have indeed been correct. The report is poorly docu-

mented, shows limited awareness of relevant recent labour market studies, and suffers from internal inconsistencies. Some chapters seem to have been written entirely separately, without reference to the rest of the study, then pieced together at the last minute. All these flaws seem to be the result of excessive haste.

Part One of the study provides a good review of labour markets and the evolution of labour market policies in the 1960s and 1970s. It ends with a forecast of labour market developments in the 1980s.

Part Two deals with particular labour market

policies: providing information, meeting needs of special groups (women and natives); influenc-

ing private sector demand; direct job creation; training; immigration; and facilitating labour market adjustment (a chapter is devoted to each of these). Most of the relevant policies are considered here, though manpower mobility policies get short shrift.

The forecasting chapter in Part One develops two key projections that seem to influence much of the task force thinking: over the 1980s there will be relatively strong growth in overall labour demand, and there will be considerable differ- ences in excess demand by region and education level. Given the importance of this chapter, it is unfortunate that none of the forty or so studies looked at the methodology of these forecasts

Labour Market Development in the 1980s a report of the Task Force on Labour Market

Development. Ottawa, Minister of Supply and Services Canada, 1981. Pp.243.

This publication is the product of a task force on labour market development set up by the Minister of Employment and Immigration. The task force was established in July 1980 and the document was released in July 1981. In terms of resources devoted and subject matter covered, this was a massive operation (over three dozen studies were commissioned by the task force and a large number of professionals were employed internally). While mounting such a massive pro- gram in such a short time frame may have made

good political sense, most labour market analysts would probably not have expected too much from such an exercise and they would have indeed been correct. The report is poorly docu-

mented, shows limited awareness of relevant recent labour market studies, and suffers from internal inconsistencies. Some chapters seem to have been written entirely separately, without reference to the rest of the study, then pieced together at the last minute. All these flaws seem to be the result of excessive haste.

Part One of the study provides a good review of labour markets and the evolution of labour market policies in the 1960s and 1970s. It ends with a forecast of labour market developments in the 1980s.

Part Two deals with particular labour market

policies: providing information, meeting needs of special groups (women and natives); influenc-

ing private sector demand; direct job creation; training; immigration; and facilitating labour market adjustment (a chapter is devoted to each of these). Most of the relevant policies are considered here, though manpower mobility policies get short shrift.

The forecasting chapter in Part One develops two key projections that seem to influence much of the task force thinking: over the 1980s there will be relatively strong growth in overall labour demand, and there will be considerable differ- ences in excess demand by region and education level. Given the importance of this chapter, it is unfortunate that none of the forty or so studies looked at the methodology of these forecasts

Labour Market Development in the 1980s a report of the Task Force on Labour Market

Development. Ottawa, Minister of Supply and Services Canada, 1981. Pp.243.

This publication is the product of a task force on labour market development set up by the Minister of Employment and Immigration. The task force was established in July 1980 and the document was released in July 1981. In terms of resources devoted and subject matter covered, this was a massive operation (over three dozen studies were commissioned by the task force and a large number of professionals were employed internally). While mounting such a massive pro- gram in such a short time frame may have made

good political sense, most labour market analysts would probably not have expected too much from such an exercise and they would have indeed been correct. The report is poorly docu-

mented, shows limited awareness of relevant recent labour market studies, and suffers from internal inconsistencies. Some chapters seem to have been written entirely separately, without reference to the rest of the study, then pieced together at the last minute. All these flaws seem to be the result of excessive haste.

Part One of the study provides a good review of labour markets and the evolution of labour market policies in the 1960s and 1970s. It ends with a forecast of labour market developments in the 1980s.

Part Two deals with particular labour market

policies: providing information, meeting needs of special groups (women and natives); influenc-

ing private sector demand; direct job creation; training; immigration; and facilitating labour market adjustment (a chapter is devoted to each of these). Most of the relevant policies are considered here, though manpower mobility policies get short shrift.

The forecasting chapter in Part One develops two key projections that seem to influence much of the task force thinking: over the 1980s there will be relatively strong growth in overall labour demand, and there will be considerable differ- ences in excess demand by region and education level. Given the importance of this chapter, it is unfortunate that none of the forty or so studies looked at the methodology of these forecasts

Reviews/Comtes rendus 145 Reviews/Comtes rendus 145 Reviews/Comtes rendus 145

This content downloaded from 185.44.77.128 on Sun, 15 Jun 2014 08:57:04 AMAll use subject to JSTOR Terms and Conditions

and/or attempted to evaluate the quality of such forecasts. It is this writer's view that the report takes the forecasts far too seriously. If such

occupational forecasts are very inaccurate then it is arguably better to train workers very gen- erally so that they are adaptable, rather than to meet specific occupational shortages (the strate-

gy adopted throughout this report). A second chapter that seems key (at least in

terms of budget implications) is the chapter on

training. Separate treatment is given to post- secondary education and to skills training. On the former they conclude too many resources are being devoted to it (on somewhat weak

evidence) and that there is a misallocation within the post-secondary sector, at least when viewed from a training perspective. One of their major recommendations following from this is that universities and colleges should be made more

responsive to changing labour market conditions. This seems clearly at odds with the well-docu- mented arguments of Richard Freeman (e.g., The Overeducated American) that educational institutions overadmit students in high demand

subjects and contribute to educational 'hog- cycles'.

In the skill training section of this chapter, the major question that is not addressed is that of why the government should be involved at all. The task force concludes, however, that more

government involvement in skill training is badly needed because of the continuing strength of demand (?) and excessive dependence on immi-

grants. What seems not to be recognized, how-

ever, is that the willingness of governments to

open the door to skilled immigrants at the first

sign of a shortage has probably kept down the

wages of highly skilled workers and reduced the incentive to train.

I looked forward to the chapter dealing with

groups with special needs, as nine separate studies were commissioned for this one chapter. The chapter itself, however, I found disappoint- ing. There was, surprisingly, no discussion of

equal pay legislation or of equal pay for work of equal value legislation. There is, however, a useful discussion of the advantages and disad-

vantages of affirmative action policies, though the report in the end fails to recommend such

policies and this comes as somewhat of a surprise

and/or attempted to evaluate the quality of such forecasts. It is this writer's view that the report takes the forecasts far too seriously. If such

occupational forecasts are very inaccurate then it is arguably better to train workers very gen- erally so that they are adaptable, rather than to meet specific occupational shortages (the strate-

gy adopted throughout this report). A second chapter that seems key (at least in

terms of budget implications) is the chapter on

training. Separate treatment is given to post- secondary education and to skills training. On the former they conclude too many resources are being devoted to it (on somewhat weak

evidence) and that there is a misallocation within the post-secondary sector, at least when viewed from a training perspective. One of their major recommendations following from this is that universities and colleges should be made more

responsive to changing labour market conditions. This seems clearly at odds with the well-docu- mented arguments of Richard Freeman (e.g., The Overeducated American) that educational institutions overadmit students in high demand

subjects and contribute to educational 'hog- cycles'.

In the skill training section of this chapter, the major question that is not addressed is that of why the government should be involved at all. The task force concludes, however, that more

government involvement in skill training is badly needed because of the continuing strength of demand (?) and excessive dependence on immi-

grants. What seems not to be recognized, how-

ever, is that the willingness of governments to

open the door to skilled immigrants at the first

sign of a shortage has probably kept down the

wages of highly skilled workers and reduced the incentive to train.

I looked forward to the chapter dealing with

groups with special needs, as nine separate studies were commissioned for this one chapter. The chapter itself, however, I found disappoint- ing. There was, surprisingly, no discussion of

equal pay legislation or of equal pay for work of equal value legislation. There is, however, a useful discussion of the advantages and disad-

vantages of affirmative action policies, though the report in the end fails to recommend such

policies and this comes as somewhat of a surprise

since the disadvantages cited hardly seemed to

outweigh the advantages cited in the chapter itself.

One other glaring problem deserves mention.

Sequential chapters are devoted to indirect inter- vention in labour markets (working through private employers) and to direct intervention

(direct employment). The asymmetry of treat- ment is striking. In the former, the focus is on the social opportunity cost of labour and whether such involvement is justified (the conclusion is that it only seldom is). In the latter, this tool seems to be forgotten entirely and the question addressed is which type is best (the conclusion is that community-based intervention is to be

preferred). All in all, this is a major document, and this

review has only been able to comment on a small fraction of the recommendations and supporting material. As stated at the outset, this reviewer was disappointed in the product, though perhaps not surprised given the severe time constraints under which the task force laboured.

A. LESLIE ROBB, Department of Economics, McMaster University

A Fair Way to Share a report of the Manitoba Assessment Review Committee. Winnipeg, the Committee, 1982.

Pp.xxii, 360.

This report is the culmination of a three year study of property tax administration. The Com- mittee was chaired by ex-Premier Walter Wier and inspired, in part, by legal challenges to City of Winnipeg property assessments last reviewed in 1959 (the law required triennial reassessment).

The report blends economic and political con- siderations in arriving at its recommendations.

Accordingly, the recommendations are for feasible reforms, apparently recognizing, as did

Ontario, that major shifts in taxes among prop- erty classes are politically impossible. This con- straint sharply limits the inequities to be correct- ed. Tax increases (decreases) of more than 20% are limited to 13.3 (20.1)% of properties. The

only major beneficiary appears to be apartments, now lumped in with single-family dwellings and so benefiting from a 30-35% decrease in taxes.

since the disadvantages cited hardly seemed to

outweigh the advantages cited in the chapter itself.

One other glaring problem deserves mention.

Sequential chapters are devoted to indirect inter- vention in labour markets (working through private employers) and to direct intervention

(direct employment). The asymmetry of treat- ment is striking. In the former, the focus is on the social opportunity cost of labour and whether such involvement is justified (the conclusion is that it only seldom is). In the latter, this tool seems to be forgotten entirely and the question addressed is which type is best (the conclusion is that community-based intervention is to be

preferred). All in all, this is a major document, and this

review has only been able to comment on a small fraction of the recommendations and supporting material. As stated at the outset, this reviewer was disappointed in the product, though perhaps not surprised given the severe time constraints under which the task force laboured.

A. LESLIE ROBB, Department of Economics, McMaster University

A Fair Way to Share a report of the Manitoba Assessment Review Committee. Winnipeg, the Committee, 1982.

Pp.xxii, 360.

This report is the culmination of a three year study of property tax administration. The Com- mittee was chaired by ex-Premier Walter Wier and inspired, in part, by legal challenges to City of Winnipeg property assessments last reviewed in 1959 (the law required triennial reassessment).

The report blends economic and political con- siderations in arriving at its recommendations.

Accordingly, the recommendations are for feasible reforms, apparently recognizing, as did

Ontario, that major shifts in taxes among prop- erty classes are politically impossible. This con- straint sharply limits the inequities to be correct- ed. Tax increases (decreases) of more than 20% are limited to 13.3 (20.1)% of properties. The

only major beneficiary appears to be apartments, now lumped in with single-family dwellings and so benefiting from a 30-35% decrease in taxes.

146 Reviews/Comptes rendus 146 Reviews/Comptes rendus

This content downloaded from 185.44.77.128 on Sun, 15 Jun 2014 08:57:04 AMAll use subject to JSTOR Terms and Conditions