Globalization and productivity clash in Australia and Canada's wage growth.
Australia and Canada had different real wage trends from 1870 to 1913. Canada's wages rose faster due to increased productivity, while Australia's wages were boosted by immigration. Globalization factors like migration and trade affected wages in both countries, with immigration lowering wages in Canada. In Australia, wage earners got a bigger share of national income after 1890, while in Canada, the benefits of productivity growth were offset by immigration's impact on wages. Despite Canada's faster productivity growth, Australia's distributional shifts towards wage earners and the effects of immigration kept Canada's wage lead limited before 1914.