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Unemployment Insurance and Unemployment Dynamics

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Author Info

  • Ross D. Milbourne
  • Douglas D.
  • W. David Scoones

Abstract

A puzzling feature of the recent behaviour of the Canadian unemployment rate is its persistence in the presence of sustained expansion in real national income. Neither deficient aggregate demand nor a once-for-all supply-side increase in the natural rate provide a convincing explanation for this. The paper presents a model which explains how aspects of unemployment insurance in Canada will cause persistence. We document the increased persistence since 1977 and show that the model accounts for much of this phenomenon.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 750.

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Length: 33 pages
Date of creation: 1989
Date of revision:
Handle: RePEc:qed:wpaper:750

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Phone: (613) 533-2250
Fax: (613) 533-6668
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Web page: http://qed.econ.queensu.ca/
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Related research

Keywords: unemployment ; national income ; unemployment insurance;

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Cited by:
  1. Guillaume Rocheteau, 1999. "Can an Unemployment Insurance System Generate Multiple Natural Rates?," International Tax and Public Finance, Springer, vol. 6(3), pages 379-387, August.
  2. Heisz, Andrew & Baker, Michael & Corak, Miles, 1996. "Unemployment in the Stock and Flow," Analytical Studies Branch Research Paper Series 1997097e, Statistics Canada, Analytical Studies Branch.
  3. repec:fth:prinin:352 is not listed on IDEAS
  4. Koustas, Z., 1996. "Canadian Evidence on Long-Run Neutrality Propositions," Papers 1996-04, York (Canada) - Department of Economics.
  5. Michael Baker & Miles Corak & Andrew Heisz, 1998. "The Labour Market Dynamics of Unemployment Rates in Canada and the United States," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 72-89, February.
  6. Kevin Lang & Jay Zagorsky, 1998. "Why are Canadian and US Unemployment Rates So Highly Correlated?," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 56-71, February.
  7. Robert A. Amano & Tony S. Wirjanto, 1995. "An Empirical Investigation into Government Spending and Private Sector Behaviour," Macroeconomics 9502005, EconWPA.
  8. Hassan Bougrine & Mario Seccareccia, 1999. "Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(1), pages 5-21.
  9. Cote, D. & Hostland, D., 1996. "An Econometric Examination of the Trend Unemployment Rate in Canada," Working Papers 96-7, Bank of Canada.
  10. Stephen S. Poloz, 1995. "The Causes of Unemployment in Canada: A Review of the Evidence," Macroeconomics 9502002, EconWPA.
  11. Stephen S. Poloz, . "The Causes of Unemployment in Canada: A Review of the Evidence," Working Papers 94-11, Bank of Canada.
  12. Peter Kuhn (McMaster) & A. Leslie Robb (McMaster), . "Shifting Skill Demand and the Canada-US Unemployment Gap: Evidence from Prime-Age Men," Canadian International Labour Network Working Papers 01, McMaster University.
  13. repec:qed:wpaper:904 is not listed on IDEAS
  14. Manfred Keil & Louis Pantuosco, 1998. "Canadian and US Unemployment Rates: A Comparison Based on Regional Data," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 38-55, February.

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