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The ins and outs of unemployment in Canada, 1976–2008

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  • Michele Campolieti

Abstract

This paper studies the flows into and out of unemployment in Canada at an aggregate and a number of disaggregated levels. I find that inflows into unemployment are countercyclical and outflows are procyclical. At an aggregate level, changes in the rate at which individuals leave unemployment account for most of the changes in unemployment rates in Canada between 1976 and 2008. However, flows into unemployment matter more at some disaggregated levels. There are also some differences in the contributions of flows into and out of unemployment to changes in unemployment rates across the 1981–82 and 1990–92 recessions. Ce texte étudie les entrées et sorties du chômage au Canada au niveau agrégé et à un certain nombre de niveaux de désagrégation. On découvre que les entrées en chômage sont contre‐cycliques et les sorties pro‐cycliques. Au niveau agrégé, les changements dans le taux de sorties du chômage expliquent le gros des changements dans les taux de chômage au Canada entre 1976 et 2008. Cependant, les flux à l’entrée sont plus importants à certains niveaux de désagrégation. On note aussi des différences dans la contribution des flux à l’entrée et à la sortie du chômage aux changements dans les taux de chômage au cours des récessions de 1981–82 et de 1990–92.

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  • Michele Campolieti, 2011. "The ins and outs of unemployment in Canada, 1976–2008," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(4), pages 1331-1349, November.
    • Handle: RePEc:wly:canjec:v:44:y:2011:i:4:p:1331-1349
    DOI: 10.1111/j.1540-5982.2011.01676.x
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    Cited by:

    1. René Morissette & Hanqing Qiu & Ping Ching Winnie Chan, 2013. "The risk and cost of job loss in Canada, 1978–2008," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1480-1509, November.
    2. Campolieti, Michele & Riddell, Chris, 2012. "Disability policy and the labor market: Evidence from a natural experiment in Canada, 1998–2006," Journal of Public Economics, Elsevier, vol. 96(3), pages 306-316.
    3. Pierre Brochu, 2013. "The source of the new Canadian job stability patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 412-440, May.

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