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Behavioural Response to UI Reform in Constrained and Unconstrained Models of Labour Supply

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  • Shelley A. Phipps

Abstract

This paper investigates how taking account of demand-side constraints affects estimated models of labor supply and, hence, predicted behavioral responses to unemployment insurance reform in Canada. Constrained and unconstrained labor-supply equations are estimated for single men and women using microdata from the 1982 Survey of Consumer Finance. Detailed modeling of the impact of the Canadian unemployment insurance program on individual budget constraints enables the simulation of behavioral responses to the unemployment insurance reform proposals of the Forget and Macdonald commissions. Results indicate that in a high-unemployment economy, labor-supply responses will be negligible.

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Bibliographic Info

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

Volume (Year): 24 (1991)
Issue (Month): 1 (February)
Pages: 34-54

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Handle: RePEc:cje:issued:v:24:y:1991:i:1:p:34-54

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Hassan Bougrine & Mario Seccareccia, 1999. "Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada," International Review of Applied Economics, Taylor and Francis Journals, vol. 13(1), pages 5-21.
  2. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, vol. 5(2), pages 135-166, June.
  3. Lars Osberg, 1996. "Economic Policy Variables and Population Health," Department of Economics at Dalhousie University working papers archive healthy, Dalhousie, Department of Economics.
  4. Kapsalis, Constantine, 2000. "The Impact of Bill C-12 on New Entrants and Re-Entrants," MPRA Paper 26137, University Library of Munich, Germany.
  5. Dostie, Benoit & Kromann, Lene, 2012. "Labour Supply and Taxes: New Estimates of the Responses of Wives to Husbands' Wages," IZA Discussion Papers 6392, Institute for the Study of Labor (IZA).

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