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Unemployment Insurance and Unemployment Dynamics

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Author Info
Ross D. Milbourne
Douglas D.
W. David Scoones

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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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Publisher 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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Keywords: unemployment national income unemployment insurance

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  1. 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. [Downloadable!] (restricted)
  2. Stephen S. Poloz, . "The Causes of Unemployment in Canada: A Review of the Evidence," Working Papers 94-11, Bank of Canada. [Downloadable!]
  3. 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. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Cote, D. & Hostland, D., 1996. "An Econometric Examination of the Trend Unemployment Rate in Canada," Working Papers 96-7, Bank of Canada. [Downloadable!]
  6. Peter Kuhn & A. Leslie Robb, 1998. "Shifting Skill Demand and the Canada-US Unemployment Gap: Evidence from Prime-Age Men," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 170-191, February. [Downloadable!] (restricted)
    Other versions:
  7. Robert A. Amano & Tony S. Wirjanto, 1995. "An Empirical Investigation into Government Spending and Private Sector Behaviour," Macroeconomics 9502005, EconWPA. [Downloadable!]
    Other versions:
  8. Baker, Michael & Corak, Miles & Heisz, Andrew, 1996. "Unemployment in the Stock and Flow," Analytical Studies Branch Research Paper Series 1997097e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  9. D. Gross, 1997. "Unemployment Insurance Turnover in Canada," Working Papers 9708, University of Sydney, Department of Economics. [Downloadable!]
  10. Hassan Bougrine, 1999. "Unemployment Insurance and Unemployment: an analysis of the aggregate demand-side effects for postwar Canada," International Review of Applied Economics, Taylor and Francis Journals, vol. 13(1), pages 5-21, January. [Downloadable!] (restricted)
  11. Stephen S. Poloz, 1995. "The Causes of Unemployment in Canada: A Review of the Evidence," Macroeconomics 9502002, EconWPA. [Downloadable!]
  12. David Card, 1992. "A Comparative Analysis of Unemployment in Canada and the United States," Working Papers 677, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  13. David Card & Craig Riddell, 1996. "Unemployment in Canada and the United States: A Further Analysis," Working Papers 731, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  14. repec:fth:prinin:352 is not listed on IDEAS
Statistics
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