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

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Author Info

  • 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.

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Bibliographic Info

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

Volume (Year): 35 (2002)
Issue (Month): 2 (May)
Pages: 363-384

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Handle: RePEc:cje:issued:v:35:y:2002:i:2:p:363-384

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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. 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.
  2. Nong Zhu & Cecile Batisse, 2014. "L’effet des politiques sociales sur l’emploi des nouveaux immigrants à Montréal," CIRANO Working Papers 2014s-05, CIRANO.
  3. Matthew Webb & Arthur Sweetman & Casey Warman, 2012. "How Targeted is Targeted Tax Relief? Evidence from the Unemployment Insurance Youth Hires Program," Working Papers 1298, Queen's University, Department of Economics.

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