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The Impact of the Unemployment Insurance Reform of 1990 on Single Earners

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  • Shelley A. Phipps

Abstract

This paper uses estimated labour-supply functions to predict behavioural responses and hence changes in the level and distribution of income resulting from the 1989 reform of the Unemployment Insurance (UI) program. The focus of the paper is on changes in the UI eligibility provisions and benefit structure. Predicted labour-supply responses to the proposed policy changes are very small. This is due to highly inelastic estimated labour-supply functions as well as to the recognition that quantity-constraints from the demand-side of the labour market can limit possible labour-supply.

Suggested Citation

  • Shelley A. Phipps, 1990. "The Impact of the Unemployment Insurance Reform of 1990 on Single Earners," Canadian Public Policy, University of Toronto Press, vol. 16(3), pages 252-261, September.
    • Handle: RePEc:cpp:issued:v:16:y:1990:i:3:p:252-261
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    References listed on IDEAS

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    1. John C. Ham, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(3), pages 335-354.
    2. Dickens, William T & Lundberg, Shelly J, 1993. "Hours Restrictions and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 169-192, February.
    3. Alice Nakamura & Masao Nakamura, 1983. "Part-Time and Full-Time Work Behaviour of Married Women: A Model with a Doubly Truncated Dependent Variable," Canadian Journal of Economics, Canadian Economics Association, vol. 16(2), pages 229-257, May.
    4. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    5. Kahn, Shulamit & Lang, Kevin, 1991. "The Effect of Hours Constraints on Labor Supply Estimates," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 605-611, November.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    7. Chris Robinson & Nigel Tomes, 1985. "More on the Labour Supply of Canadian Women," Canadian Journal of Economics, Canadian Economics Association, vol. 18(1), pages 156-163, February.
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    Cited by:

    1. Galen J. Countryman, 1999. "The Effect of Unemployment Insurance Benefits on Income Inequality in the Canadian Provinces," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 539-556, December.
    2. Shelley Phipps, 1995. "Canadian Child Benefits: Behavioural Consequences and Income Adequacy," Canadian Public Policy, University of Toronto Press, vol. 21(1), pages 20-30, March.

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