Differences in wage distributions between Canada and the United States: Anapplication of a flexible estimator of distribution functions in the presence of covariates

We construct a tractable, flexible-functional-form estimator of cumulative distribution functions for non-negative random variables which admits large numbers of covariates. The estimator adopts and extends techniques from th e spell-duration literature for estimating hazard functions to distribution functions for wages, earnings, and income. We apply these methods to inves tigate sources of wage inequality for full-time male workers between Canada and the United States, finding that the Canadian wage density has a thinne r left tail because low-educated workers have higher pay and a thinner righ t tail because of a lower proportion of highly-educated workers. Unions app ear to play a large role in these outcomes.