Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?
AbstractThe authors construct a simple general equilibrium model of unemployment and calibrate it to the Canadian economy. Job creation and destruction are endogenous. In this model, they consider several potential factors that could contribute to the long-run increase in the Canadian unempoloyment rate: a more generous unemployment insurance system, higher layoff costs, higher discretionary taxes, and a slower rate of productivity growth. They find that in the model economy the impact of all of these factors on the unemployment rate is small.
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Bibliographic InfoPaper provided by Bank of Canada in its series Working Papers with number 98-19.
Length: 73 pages
Date of creation: 1998
Date of revision:
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Economic Models; Fiscal Policy; Labour Markets;
Other versions of this item:
- Andreas Hornstein & Mingwei Yuan, 1999. "Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 878-905, August.
- Andreas Hornstein & Mingwei Yuan, 1998. "Can a matching model explain the long-run increase in Canada's unemployment rate?," Working Paper 98-02, Federal Reserve Bank of Richmond.
- E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- J4 - Labor and Demographic Economics - - Particular Labor Markets
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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