Unemployment Insurance and Unemployment Dynamics
AbstractA 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 InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 750.
Length: 33 pages
Date of creation: 1989
Date of revision:
unemployment ; national income ; unemployment insurance;
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