Canadian and US Unemployment Rates: A Comparison Based on Regional Data
AbstractThis paper sets out to explain the Canadian-US unemployment rate gap that has persisted since 1982. The gap, which appeared in two stages, has lasted through peaks and troughs in economic activity. We use a panel of five Canadian and nine US regions to search for the causes. The 1971 liberalization of the Canadian unemployment insurance system can explain the first occurrence of the gap, which was veiled by preferable raw material price movements during the 1970s. The further widening of the gap in the '90s is the result of the tougher post 1987 Bank of Canada stance in fighting inflation.
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Bibliographic InfoArticle provided by University of Toronto Press in its journal Canadian Public Policy.
Volume (Year): 24 (1998)
Issue (Month): s1 (February)
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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
Web page: http://economics.ca/cpp/
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.:
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