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Accounting for Unemployment--A Labour Market Perspective

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Author Info
Stefan F. Kaliski

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Abstract

The author examines whether prolonged high unemployment in Canada can be attributed to various "structural" causes, rather than t o demand deficiency as found by macroeconometric models. The answer i s largely negative. Neither the dispersion of sectoral growth rates n or excessive and rigid real wages can convincingly account for most u nemployment. Contentions to the contrary are based upon inappropriate partial analyses. Enduring shifts in industrial structure have, if a nything, been declining. Labor mobility is high. Much unemployment la sts too long to be frictional. Fuller quantitative understanding of t he nature of unemployment can be achieved only in a more general fram ework.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 20 (1987)
Issue (Month): 4 (November)
Pages: 665-93
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Handle: RePEc:cje:issued:v:20:y:1987:i:4:p:665-93

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  1. Kevin Lang & Jay Zagorsky, 1998. "Why are Canadian and US Unemployment Rates So Highly Correlated?," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 56-71, February. [Downloadable!] (restricted)
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