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The effect of unemployment insurance on weekly hours of work in Canada

Author

Listed:
  • Jane Friesen

Abstract

Major revisions to the Canadian unemployment insurance program in 1997 created a benefit structure that effectively provides more insurance to workers who are employed for longer workweeks. This anomaly creates an incentive for workers and firms to tailor their weekly work schedules to maximize net program benefits. Analysis of Labour Force Survey data shows that workers and firms responded to these changes by altering weekly hours as expected. This behavioural response demonstrates the sensitivity of hours of work decisions to labour market policies.

Suggested Citation

  • Jane Friesen, 2002. "The effect of unemployment insurance on weekly hours of work in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 35(2), pages 363-384, May.
    • Handle: RePEc:cje:issued:v:35:y:2002:i:2:p:363-384
    DOI: 10.1111/1540-5982.00135
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    Citations

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    Cited by:

    1. Arthur Sweetman & Matthew D. Webb & Casey Warman, 2014. "How Targeted Is Targeted Tax Relief? Evidence From The Unemployment Insurance Youth Hires Program," Working Paper 1298, Economics Department, Queen's University.
    2. Cécile BATISSE & Nong ZHU, 2009. "L’effet des politiques sociales sur l’emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers 200925, CERDI.
    3. Colin Busby & David Gray, 2016. "Unequal Access: Making Sense of EI Eligibility Rules and How to Improve Them," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 450, May.
    4. Matthew D. Webb & Arthur Sweetman & Casey Warman, 2016. "Targeting Tax Relief at Youth Employment," Canadian Public Policy, University of Toronto Press, vol. 42(4), pages 415-430, December.
    5. Stéphanie Lluis & Brian P. McCall, 2011. "Evaluation of the Impact of the Increase in EI Allowable Earnings Pilot Project on Working While on Claim and Job Search Behaviour in Canada," Working Papers 1106, University of Waterloo, Department of Economics, revised Dec 2011.
    6. Stephanie Lluis & Brian McCall, 2017. "Part-Time Work and Crowding-Out Implications of Employment Insurance Pilot Initiatives," Working Papers 1701, University of Waterloo, Department of Economics, revised Jan 2017.
    7. Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," CERDI Working papers halshs-00554261, HAL.
    8. Nong Zhu & Cecile Batisse, 2014. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal," CIRANO Working Papers 2014s-05, CIRANO.
    9. Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers halshs-00554261, HAL.

    More about this item

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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