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The Beveridge curve and unemployment fluctuations in Canada

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  • Richard Archambault
  • Mario Fortin

Abstract

We estimate the impact of cyclical, sectoral, and participation shocks and that of the trend on both the Canadian unemployment rate and the job vacancy rate over the 1969 to 1998 period. We conclude that a rise in the Canadian unemployment rate of almost 5 percentage units occurred between 1972 and 1982 because of participation rate shocks and a trend movement. Because the trend also explains the leftward shift of the Beveridge curve observed in the 1990s, this shift cannot be interpreted as a decline in the natural unemployment rate.

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Bibliographic Info

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

Volume (Year): 34 (2001)
Issue (Month): 1 (February)
Pages: 58-81

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Handle: RePEc:cje:issued:v:34:y:2001:i:1:p:58-81

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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. Kosfeld, Reinhold & Dreger, Christian & Eckey, Hans-Friedrich, 2006. "On the Stability of the German Beveridge Curve: A Spatial Econometric Perspective," IZA Discussion Papers 2099, Institute for the Study of Labor (IZA).
  2. Lars Osberg & Zhengxi Lin, 2000. "How Much of Canada's Unemployment is Structural?," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 141-157, July.
  3. Morissette, Rene Zhang, Xuelin, 2001. "Quelles entreprises ont des taux de vacance eleves au Canada?," Direction des etudes analytiques : documents de recherche 2001176f, Statistics Canada, Direction des etudes analytiques.
  4. Ochsen, Carsten, 2004. "On the Measurement of Mismatch," Thuenen-Series of Applied Economic Theory 44, University of Rostock, Institute of Economics.
  5. Morissette, Rene Zhang, Xuelin, 2001. "Which Firms Have High Job Vacancy Rates in Canada?," Analytical Studies Branch Research Paper Series 2001176e, Statistics Canada, Analytical Studies Branch.
  6. Yves Gingras & Richard Roy, 2000. "Is There a Skill Gap in Canada?," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 159-174, July.
  7. Reinhold Kosfeld & Christian Dreger & Hans-Friedrich Eckey, 2008. "On the stability of the German Beveridge curve: a spatial econometric perspective," The Annals of Regional Science, Springer, vol. 42(4), pages 967-986, December.

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