Ontario Workers Paid Less

Wages for Ontario workers are 23 per cent less than those in the U.S. in the industries that are most important to Ontario's prosperity, says a preliminary report released Friday by an institute supported by the provincial government.

Ontario firms are not as productive as their American equals because they don't face the same competitive pressures that develop in industry clusters across the border, said James Milner, executive director of the Institute for Competitiveness and Prosperity.

"Those two factors ... we think go together to cause our firms to be not as productive as they could be, and then, with that lower productivity, wages tend to go down," he said in an interview.

The institute assessed the impact of market structures on Ontario's competitiveness to help understand the causes of the province's $4,118-per-capita prosperity gap compared to a peer group of U.S. states.

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