Abstract
This paper attempts to examine the impact of state taxation and expenditure activities on Canadian labor and non-labor. Using state expenditure and revenue data for the period 1955-1986, the Canadian transfer ratio is estimated and then it is compared and contrasted with the transfer ratio for the United States. This inter-country comparison also enables us to isolate the influence of a crisis-induced rise in unemployment on the net transfer from arguments that the social wage grew because of the growing power of labor over capital and the state.
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