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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.

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, November.
    • Handle: RePEc:bla:jregsc:v:41:y:2001:i:4:p:701-734
    DOI: 10.1111/0022-4146.00240
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    Cited by:

    1. 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.
    2. Böckerman, Petri, 2002. "Understanding Regional Productivity in a Nordic Welfare State: Does ICT Matter?," Discussion Papers 798, The Research Institute of the Finnish Economy.
    3. Amir Borges Ferreira Neto, 2023. "Do public libraries impact local labour markets? Evidence from Appalachia," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(2), pages 216-238, April.
    4. 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.
    5. Angyridis, Constantine & Zhou, Haiwen, 2022. "Search, Technology Choice, and Unemployment," MPRA Paper 112064, University Library of Munich, Germany.
    6. 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.
    7. repec:rre:publsh:v:33:y:2003:i:1:p:17-39 is not listed on IDEAS
    8. 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.
    9. Solmaria Halleck Vega & J. Paul Elhorst, 2017. "Regional labour force participation across the European Union: a time–space recursive modelling approach with endogenous regressors," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(2-3), pages 138-160, July.
    10. 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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