THE FEMALE MALE UNEMPLOYMENT RATE DIFFERENTIAL

We show that bottlenecks in the economy's ability to absorb new entrants do not explain the female/male unemployment rate (UR) differential in Canada. The "loose attachment' of women to the work force explains only one-quarter of the differential. Of overriding importance is the minimum wage. If not for minimum wages mature women would have an UR below that of men. Relative minimum wages have been falling since 1974. Further falls could lead to a negative female/male UR differential and reverse all the standard arguments about a greater female labour force share increasing the natural rate of unemployment. -Authors