This paper provides evidence that cyclical unemployment is associated with increased income inequality in Canada. The empirical results reinforce the recent findings of Erksoy (1981-1987). Erksoy used a dynamic micro-simulation to model the period from 1981 to 1987. In contrast to his work, my paper takes a macroeconomic perspective and uses an income share model. I examine the period from 1981 to 1992 using data from the "Survey of Consumer Finances." It is striking that two such different approaches reach the same conclusion.
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Volume (Year): 21 (1995) Issue (Month): 4 (December) Pages: 423-428 Download reference. The following formats are available: HTML
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