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Structural Determinants of the Natural Rate of Unemployment in Canada

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  • Coe, David T.

Abstract

This paper presents empirical estimates of the policy and structural determinants of the natural rate of unemployment in Canada. The paper begins with a discussion of structural features of the economy which impinge on the adjustment of real wages to their equilibrium level. Estimates are presented showing how the generosity of the unemployment insurance system is related to past levels of unemployment. The empirical results indicate that government policies have been largely responsible for changes in the natrual rate, and hence can contribute to a reduction in the natural rate in the medium term.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8623.

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Date of creation: 06 Apr 1989
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Handle: RePEc:pra:mprapa:8623

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Keywords: Natural rate of unemployment; Canada;

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References

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  1. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 427, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Lindbeck, Assar & Snower, Dennis J, 1988. "Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach," American Economic Review, American Economic Association, American Economic Association, vol. 78(1), pages 167-88, March.
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Citations

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Cited by:
  1. Stephen S. Poloz, . "The Causes of Unemployment in Canada: A Review of the Evidence," Working Papers, Bank of Canada 94-11, Bank of Canada.
  2. Charles Adams & David T. Coe, 1990. "A Systems Approach to Estimating the Natural Rate of Unemployment and Potential Output for the United States," IMF Staff Papers, Palgrave Macmillan, vol. 37(2), pages 232-293, June.
  3. Stephen S. Poloz, 1995. "The Causes of Unemployment in Canada: A Review of the Evidence," Macroeconomics, EconWPA 9502002, EconWPA.
  4. Cote, D. & Hostland, D., 1996. "An Econometric Examination of the Trend Unemployment Rate in Canada," Working Papers, Bank of Canada 96-7, Bank of Canada.
  5. Pichette, Lise, 1998. "La politique monétaire a-t-elle des effets asymétriques sur l'emploi?," Working Papers, Bank of Canada 98-17, Bank of Canada.
  6. Claar, Victor V, 2002. "Is the NAIRU More Useful in Forecasting Inflation than the Natural Rate of Unemployment?," MPRA Paper 14257, University Library of Munich, Germany.
  7. Robert A. Amano & Tony S. Wirjanto, . "An Empirical Investigation into Government Spending and Private Sector Behaviour," Working Papers, Bank of Canada 94-8, Bank of Canada.
  8. Beatriz Rodríguez Prado, 1995. "La tasa natural de desempleo en la economía española: un intento de cuantificación," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 3, pages 133-151, Junio.
  9. Cousineau, Jean-Michel, 1991. "L’effet du salaire minimum sur le chômage des jeunes et des femmes au Québec : une réestimation et un réexamen de la question," L'Actualité Economique, Société Canadienne de Science Economique, Société Canadienne de Science Economique, vol. 67(2), pages 144-165, juin.

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