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Jobless Durations of Displaced Workers: A Comparison of Canada and the United States

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Author Info
David Gray
Gilles Grenier

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Abstract

This paper deals with one fact of the unemployment rate gap between Canada and the United States that started in the early 1980s. We seek to analyse discrepancies in the search behaviour and environment of displaced workers which give rise to a higher observed average jobless duration for Canadian workers. A common hazard function is estimated from a data set which combines comparable information from the American and the Canadian Displaced Worker Surveys for 1986. A descriptive analysis of the characteristics' and the distribution of jobless spells of displaced workers in the two countries reveals some relevant differences across countries. The results from the regression model are roughly similar for the two countries, with the exception of significant differences in the impact of a few variables, such as the cause of displacement (plant closure versus production cutback); there is also a higher degree of negative duration dependence in the US. An empirical decomposition exercise suggests that the differences in the characteristics of displaced workers and their labour markets are relatively more important than differences in the estimated regression coefficients of the corresponding variables in generating a longer average duration in Canada.

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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 24 (1998)
Issue (Month): s1 (February)
Pages: 152-169
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Handle: RePEc:cpp:issued:v:24:y:1998:i:s1:p:152-169

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  2. Katz, Lawrence F & Meyer, Bruce D, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 973-1002, November. [Downloadable!] (restricted)
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  3. Michael Baker & Miles Corak & Andrew Heisz, 1998. "The Labour Market Dynamics of Unemployment Rates in Canada and the United States," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 72-89, February. [Downloadable!] (restricted)
  4. Jones, Stephen R G & Kuhn, Peter, 1995. "Mandatory Notice and Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 13(4), pages 599-622, October. [Downloadable!] (restricted)
  5. Riddell, W.C. & Card, D., 1992. "A Comparative Analysis of Unemployment in Canada and United States," UBC Departmental Archives 92-07, UBC Department of Economics.
  6. Doiron, D.J. & Rddell, W.C., 1992. "The Impact of Unionization on Male-Female Earnings Differences in Canada," UBC Departmental Archives 92-30, UBC Department of Economics.
  7. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June. [Downloadable!] (restricted)
  8. David Card & W. Craig Riddell, 1993. "A Comparative Analysis of Unemployment in Canada and the United States," NBER Chapters, in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 149-190 National Bureau of Economic Research, Inc. [Downloadable!]
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  1. Tiff Macklem & Francisco Barillas, 2005. "Recent Developments in the Canada-US Unemployment Rate Gap: Changing Patterns in Unemployment Incidence and Duration," Canadian Public Policy, University of Toronto Press, vol. 31(1), pages 101-108, March. [Downloadable!] (restricted)
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