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Economic Change and Worker Displacement in Canada: Consequences and Policy Responses

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  • Riddell, W. Craig

Abstract

Change is an enduring feature of the economy and the labour market, even in normal times. The importance of adjusting to change, and of policies that promote adjustment, has been a recurring theme throughout David Dodge’s distinguished career. This paper deals with “displaced workers,†those who permanently lose their jobs because of changing economic circumstances. I examine what we know about displacement and its consequences, and assess policies designed to assist workers adversely affected by economic change. A central finding of research on displacement is that long tenure displaced workers -- those who have held their jobs for an extended period of time -- suffer much more from losing their jobs than do others. Canada’s Employment Insurance does not take into account this salient feature of the consequences of job loss. The paper discusses ways of addressing this deficiency in our primary social insurance program for job losers.

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File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%2033%20-%20Riddell.pdf
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Bibliographic Info

Paper provided by UBC Department of Economics in its series CLSRN Working Papers with number clsrn_admin-2009-41.

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Length: 21 pages
Date of creation: 22 Jul 2009
Date of revision: 22 Jul 2009
Handle: RePEc:ubc:clssrn:clsrn_admin-2009-41

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Keywords: labour market adjustment; job displacement; unemployment; unemployment insurance; adjustment assistance policies; wage insurance;

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