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Exploring the Canadian-U.S. Unemployment and Nonemployment Rate Gaps: Are There Lessons for Both Countries?

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  • Mark D. Partridge

Abstract

The Canadian and U.S. economies are very similar. Yet, beginning in the 1980s, Canada experienced much greater relative unemployment rates followed in the 1990s by a declining share of population employed. Using state- and provincial-level data this study assesses why U.S. labor markets have recently performed relatively better than their Canadian counterparts. The empirical results indicate that more rapid U.S. employment growth explains a relatively small proportion of its lower joblessness. Structural causes including lower U.S. unionization and less generous unemployment insurance appear to be more important, at least in the long run. The Canadian labor market also appears to be less flexible to regional economic shocks. Copyright 2001 Blackwell Publishers

Suggested Citation

  • Mark D. Partridge, 2001. "Exploring the Canadian-U.S. Unemployment and Nonemployment Rate Gaps: Are There Lessons for Both Countries?," Journal of Regional Science, Wiley Blackwell, vol. 41(4), pages 701-734.
  • Handle: RePEc:bla:jregsc:v:41:y:2001:i:4:p:701-734
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    Cited by:

    1. Böckerman, Petri, 2002. "Understanding Regional Productivity in a Nordic Welfare State: Does ICT Matter?," Discussion Papers 798, The Research Institute of the Finnish Economy.
    2. Mark Partridge & Dan Rickman, 2009. "Canadian regional labour market evolutions: a long-run restrictions SVAR analysis," Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1855-1871.
    3. Scott Baum & William Mitchell, 2010. "Labour Underutilisation and Gender: Unemployment Versus Hidden-Unemployment," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 29(2), pages 233-248, April.
    4. B Ferreira Neto, Amir, 2018. "Do public libraries impact local labor markets? Evidence from Appalachia," MPRA Paper 89584, University Library of Munich, Germany.
    5. Partridge, Mark D. & Rickman, Dan S., 2003. "Do We Know Economic Development When We See It?," The Review of Regional Studies, Southern Regional Science Association, vol. 33(1), pages 17-39.
    6. Enrique López-Bazo & Elisabet Motellón, 2013. "The regional distribution of unemployment: What do micro-data tell us?," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 383-405, June.
    7. repec:taf:specan:v:12:y:2017:i:2-3:p:138-160 is not listed on IDEAS
    8. Mark Partridge & M. Rose Olfert & Alessandro Alasia, 2007. "Canadian cities as regional engines of growth: agglomeration and amenities," Canadian Journal of Economics, Canadian Economics Association, vol. 40(1), pages 39-68, February.
    9. Enrique López-Bazo & Elisabet Motellón, 2013. "On the geography of unemployment rates and the spatial sorting of workers' schooling," ERSA conference papers ersa13p869, European Regional Science Association.

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