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Long Time Out: Unemployment and Joblessness in Canada and the United States

Author

Listed:
  • Kory Kroft
  • Fabian Lange
  • Matthew J. Notowidigdo
  • Matthew Tudball

Abstract

We compare patterns of unemployment between Canada and the United States during the Great Recession. We document a rise in long-term unemployment in Canada, similar to findings in earlier work. We consider an extended matching model using restricted-access data from the Canadian Labour Force Survey, which contains information on time since last job for both unemployed and nonparticipants. We create a new historical vacancy series for Canada based on relative employment in “recruiting industries” to construct a monthly Beveridge curve for Canada. Allowing for duration dependence in flows between unemployment and nonparticipation is crucial for explaining long-term joblessness.

Suggested Citation

  • Kory Kroft & Fabian Lange & Matthew J. Notowidigdo & Matthew Tudball, 2019. "Long Time Out: Unemployment and Joblessness in Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 355-397.
  • Handle: RePEc:ucp:jlabec:doi:10.1086/703258
    DOI: 10.1086/703258
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    References listed on IDEAS

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    1. Kudlyak, Marianna & Lange, Fabian, 2014. "Measuring Heterogeneity in Job Finding Rates Among the Nonemployed Using Labor Force Status Histories," IZA Discussion Papers 8663, Institute of Labor Economics (IZA).
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    4. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo, 2013. "Duration Dependence and Labor Market Conditions: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(3), pages 1123-1167.
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    8. Kory Kroft & Fabian Lange & Matthew J. Notowidigdo & Lawrence F. Katz, 2016. "Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Nonparticipation," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 7-54.
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    Cited by:

    1. Song, Chen & Wei, Chao, 2019. "Unemployment or out of the labor force: A perspective from time allocation," Labour Economics, Elsevier, vol. 61(C).

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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