The Canada-US Unemployment Rate Gap: An Introduction and Overview
This article provides an introduction to the volume on the Canada-US umemployment rate gap. It is divided into three parts. The first examines comparative labour market trends in Canada and the United States. The second reviews the factors that have been advanced to explain the gap, categorizing explanations into three types: measurement issues, demand-side or cyclical explanations, and supply-side or structural explanations. The third section summarizes the contribution of the papers in the volume. A key conclusion is that the gap of the 1980s and the further widening of the gap in the 1990s appear to have fundamentally different underlying causes. The gap of the 1980s is principally due to a relative change in how Canadians and Americans spend their time when not working. The widening of the gap in the 1990s is due to much weaker aggregate economic growth in Canada.
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Volume (Year): 24 (1998)
Issue (Month): s1 (February)
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- Robert A. Amano & R. Tiff Macklem, 1998. "Unemployment Persistence and Costly Adjustment of Labour: A Canada-US Comparison," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 138-151, February.