Advanced Search
MyIDEAS: Login

The Sources of Unemployment in Canada, 1967-1991: Evidence from a Panel of Regions and Demographic Groups

Contents:

Author Info

Abstract

Our paper analyzes the determinants of unemployment rates in Canada. The theoritical framework incorporates "demande-side" as well as "supply-side" variables: the interest rate, federal spending, taxation, foreign activity, minimum wages, union density, demographic pressure, unemployment insurance, the terms of trade. The unemployment model is estimated with 500 observations for 5 Canadian regions and 4 demographic groups over the 25-year period 1967-1991. The purpose is to provide a comprehensive picture of the macroeconomic and structural causes of Canadian unemployment with a unique data set combining the respective advantages of macroeconomic time series and microeconomic cross sections. The long-term rise in Canadian unemployment since the 1960s is attributed, in descending order, to higher real interest rates, to the UI reform of 1972 (or what remains of it), and to slighly adverse net demographic pressure. Divergent trends in the first two of these factors in Canada and the United States would seem to explain much of the gap that emerged between the unemployment rates of the two countries in the past two decades. Notre étude analyse les sources du chômage au Canada. Le cadre théorique incorpore des facteurs de demande tout comme des facteurs d'offre: le taux d'intérêt, la dépense fédérale, la fiscalité, l'activité étrangère, le salaire minimum, le taux de syndicalisation, la pression démographique, l'assurance- chômage, les termes d'échange. Le modèle de chômage est estimé au moyen de 500 observations longitudinales portant sur 5 régions canadiennes et 4 grands groupes démographiques pour la période de 25 ans allant de 1967 à 1991. Notre but est de fournir une image complète et détaillée des causes macroécononiques et structurelles du chômage au Canada. Nous exploitons à cette fin un ensemble de données qui conjugue les avantages des séries temporelles macroéconomiques avec ceux des coupes transversales microéconomiques. Dans l'ordre décroissant, nous attribuons l'augmentation tendancielle du chômage observée au Canada depuis les années 1960 à la hausse des taux d'intérêt réels, à la réforme de l'assurance-chômage de 1972 (ou à ce qu'il en reste) et à une évolution démographique nette légèrement défavorable. L'évolution différente des deux premiers facteurs au Canada et aux Etats- Unis explique sans doute une bonne partie des tendances divergentes des taux de chômage des deux pays au cours des deux dernières décennies.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 36.

as in new window
Length: 27 pages
Date of creation: Mar 1995
Date of revision:
Handle: RePEc:cre:crefwp:36

Contact details of provider:
Postal: P.O. Box 8888, Downtown Station, Montreal (Canada) Quebec, H3C 3P8
Phone: (514) 987-6181
Fax: (514) 987-8494
Email:
Web page: http://ideas.uqam.ca/CREFE/
More information through EDIRC

Related research

Keywords: Unemployment; Canada;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pierre Fortin, 2013. "The Macroeconomics of Downward Nominal Wage Rigidity : a Review of the Issues and New Evidence for Canada," Cahiers de recherche 1309, CIRPEE.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cre:crefwp:36. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stéphane Pallage).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.