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Provincial Disparities and Structural Unemployment in Canada

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  • Sandra Hanson MCPHERSON
  • Oscar FLORES
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    Abstract

    We examine Canadian provincial structural unemployment by estimating the unemployment-vacancy relationship (Beveridge curve) for ten provinces and find that from 1988 to 2002 structural unemployment fell primarily in western provinces. A breakdown of the causes of provincial structural unemployment using a SURE estimation reveals that the generosity of the employment insurance is an important variable in the West while the mix of structural variables appear to be important for central and eastern Canada. We are unaware of any other studies evaluating the Beveridge curve at the provincial level for this period which was one of historically high unemployment for Canada.

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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

    Volume (Year): 12 (2012)
    Issue (Month): 1 ()
    Pages: 25-42

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    Handle: RePEc:eaa:eerese:v:12:y2012:i:1_2

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    Related research

    Keywords: Beveridge curve in Canada; Structural unemployment in Canada; Provincial unemployment in Canada;

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    References

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    1. Wall, Howard & Zoega, Gylfi, 1997. "The British Beveridge Curve: A Tale of Ten Regions," CEPR Discussion Papers 1771, C.E.P.R. Discussion Papers.
    2. Richard Archambault & Mario Fortin, 2001. "The Beveridge curve and unemployment fluctuations in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(1), pages 58-81, February.
    3. Cote, D. & Hostland, D., 1996. "An Econometric Examination of the Trend Unemployment Rate in Canada," Working Papers 96-7, Bank of Canada.
    4. Katharine G. Abraham, 1987. "Help-Wanted Advertising, Job Vacancies, and Unemployment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1), pages 207-248.
    5. Reid, Frank & Meltz, Noah M, 1979. "Causes of Shifts in the Unemployment-Vacancy Relationship: An Empirical Analysis for Canada," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 470-75, August.
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