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National Versus Regional Financing and Management of Unemployment and Related Benefits: The Case of Canada

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  • David Gray

Abstract

Decentralization looms large in any analysis of Canadian economic and social policy. This trend has been especially pronounced in the area of unemployment insurance (UI) and social assistance (SA) programmes. Provinces now manage SA programmes and retain 100% of any cost savings that they achieve, while the Federal government maintains full responsibility for the passive component of UI. Under a series of provincial-federal Labour Market Development Agreements, since 1997 most of Canada's provinces have taken over administrative responsibility for the employment benefit and support measures (EBSMs) targeted on UI beneficiaries. A number of articles have examined the implications for provincial SA systems of restrictive measures in the UI programme. This paper examines the possibility that provinces may shift actual and potential SA clients onto the insurance system (now called employment insurance, EI). It concludes that within the context of EBSMs, any cost-shifting of this ... La décentralisation figure en tête de toute analyse de la politique économique et sociale canadienne. Cette tendance n'est nulle part plus prononcée que dans le domaine des programmes d'assurance-chômage (AC) et d'aide sociale. Les provinces maintenant gèrent les programmes d'aide sociale et récupèrent 100% de toute économie obtenue, alors que le gouvernement fédéral conserve la pleine responsabilité pour le volet passif de l'AC. Aux termes d'une série d'Ententes sur le développement du marché du travail (EDMT), depuis 1997 la plupart des provinces canadiennes ont la responsabilité de gestion pour les Prestations d'emploi et mesures de soutien (PEMS) ciblées sur les allocataires de l'AC. Il existe quelques études portant sur les conséquences des mesures restrictives appliquées au programme d'AC pour les programmes provinciaux d'aide sociale. Cet article étudie la possibilité que les provinces fassent basculer sur le système d'assurance (nommé maintenant l'assurance-emploi, AE) les ...

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File URL: http://dx.doi.org/10.1787/023874261242
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Social, Employment and Migration Working Papers with number 14.

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Date of creation: 19 Sep 2003
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Handle: RePEc:oec:elsaab:14-en

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Cited by:
  1. Muriel Dejemeppe & Bruno Van der Linden & Andrey Launov & Bart Cockx, 2011. "Monitoring and Sanctions in a Non-Stationary Structural Job-Search Model," 2011 Meeting Papers 501, Society for Economic Dynamics.
  2. van den Berg, Gerard J & Vikström, Johan, 2009. "Monitoring Job Offer Decisions, Punishments, Exit to Work, and Job Quality," CEPR Discussion Papers 7460, C.E.P.R. Discussion Papers.
  3. Torben M. Andersen & Michael Svarer, 2007. "Flexicurity – labour market performance in Denmark," Economics Working Papers, School of Economics and Management, University of Aarhus 2007-09, School of Economics and Management, University of Aarhus.
  4. Svarer, Michael, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," IZA Discussion Papers 3015, Institute for the Study of Labor (IZA).

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