Human Capital and Convergence in Canada
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Abstract
The BMS model predicts the same speed of convergence for human capital and output per effective labour. Coulombe and Tremblay (1999) applied the model to the Canadian provincial economies during the 1961-1996 period and found support to this prediction. This paper tests the convergence of human capital in Canada during the 1976-1 999 period following the same theoretical framework The results show no evidence of convergence on the favoured indicators. Moreover, the test on the relationship between the human capital indicator and the labour productivity indicator suggests persisting interprovincial differences in labour productivity that have not been reduced either by the relative accumulation of human capital or by exogenous factors operating through time.