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An Analysis of Canadian Unemployment

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  • M. W. Keil
  • J. S. V. Symons

Abstract

The paepr reviews different reasons for the emergence in the 1980s of an unemployment gap between Canada and the U.S. We develop a small equilibrium model ofthe Canadian labor market to quantify and evaluate these reasons. We conclude that the gap is essentially due to the liberalization of the benefits system in 1971, the effects of which have often been masked by raw-material booms. The huge increase in unemployment in 1981-82 appears to have been due to a sharp monetary squeeze, exacerbated by a fall in the price of exports.

Suggested Citation

  • M. W. Keil & J. S. V. Symons, 1990. "An Analysis of Canadian Unemployment," Canadian Public Policy, University of Toronto Press, vol. 16(1), pages 1-16, March.
  • Handle: RePEc:cpp:issued:v:16:y:1990:i:1:p:1-16
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    Citations

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    Cited by:

    1. Alain Bélanger & Nicolas Bastien, 2013. "The Future Composition of the Canadian Labor Force: A Microsimulation Projection," Population and Development Review, The Population Council, Inc., vol. 39(3), pages 509-525, September.
    2. David Card & W. Craig Riddell, 1993. "A Comparative Analysis of Unemployment in Canada and the United States," NBER Chapters,in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 149-190 National Bureau of Economic Research, Inc.
    3. Andolfatto, David & Gomme, Paul, 1996. "Unemployment insurance and labor-market activity in Canada," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 44(1), pages 47-82, June.
    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.
    5. 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.
    6. Hassan Bougrine & Mario Seccareccia, 1999. "Unemployment Insurance and Unemployment: An analysis of the aggregate demand-side effects for postwar Canada," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(1), pages 5-21.
    7. Seccareccia, Mario, 1991. "Salaire minimum, emploi et productivité dans une perspective post-keynésienne," L'Actualité Economique, Société Canadienne de Science Economique, vol. 67(2), pages 166-191, juin.

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