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The Economic Effects of Unemployment Insurance in Canada: An Empirical Analysis of UI Disentitlement

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  • Green, David A
  • Riddell, W Craig

Abstract

This article provides an overview of the Canadian unemployment insurance program, including its evolution, salient features, relative size, and knowledge about its labor-market impacts. Understanding of these impacts is limited and the authors conclude that an event-study approach is a promising way to further this knowledge. They examine the effects of the 1976 unemployment insurance disentitlement of the elderly on their labor-force behavior and find evidence of significant adverse selection effects. Interactions with the public pension system suggest that poverty among the elderly could be best addressed through changes in programs other than unemployment insurance. Copyright 1993 by University of Chicago Press.

Suggested Citation

  • Green, David A & Riddell, W Craig, 1993. "The Economic Effects of Unemployment Insurance in Canada: An Empirical Analysis of UI Disentitlement," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 96-147, January.
  • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:1:p:s96-147
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    Cited by:

    1. Baker, Michael & Benjamin, Dwayne, 1999. "How do retirement tests affect the labour supply of older men?," Journal of Public Economics, Elsevier, vol. 71(1), pages 27-51, January.
    2. Bernard Fortin & Guy Lacroix & Jean-François Thibault, 1999. "The Interaction of UI and Welfare, and the Dynamics of Welfare Participation of Single Parents," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 115-132, November.
    3. Lemieux, Thomas & MacLeod, W. Bentley, 2000. "Supply side hysteresis: the case of the Canadian unemployment insurance system," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 139-170, October.
    4. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    5. Rafael Lalive & Jan Van Ours & Josef Zweimuller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 1009-1038.
    6. Regev, Tali, 2012. "Unemployment compensation under partial program coverage," Labour Economics, Elsevier, vol. 19(6), pages 888-897.
    7. 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.
    8. Tali Regev, 2006. "Unemployment insurance and the uninsured," Working Paper Series 2006-48, Federal Reserve Bank of San Francisco.
    9. 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.
    10. Castro-Fernandez, Rodriguo & Wodon, Quentin, 2002. "Protecting the Unemployed in Chile: From State Assistance to Individual Insurance?," MPRA Paper 15416, University Library of Munich, Germany.
    11. Stephen A. Woodbury & Murray Rubin, 1997. "The Duration of Benefits," Book chapters authored by Upjohn Institute researchers,in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 6, pages 211-283 W.E. Upjohn Institute for Employment Research.
    12. World Bank, 2002. "Chile's High Growth Economy : Poverty and Income Distribution, 1987-1998," World Bank Publications, The World Bank, number 14091, August.
    13. Kevin Lang & Jay Zagorsky, 1998. "Why are Canadian and US Unemployment Rates So Highly Correlated?," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 56-71, February.
    14. Kapsalis, Constantine, 2000. "The Impact of Bill C-12 on New Entrants and Re-Entrants," MPRA Paper 26137, University Library of Munich, Germany.
    15. W Craig Riddell, "undated". "Canadian Labour Market Performance in Perspective: Presidential Address to the Canadian Economics Association," Canadian International Labour Network Working Papers 36, McMaster University.
    16. Katherine Baicker & Claudia Goldin & Lawrence F. Katz, 1998. "A Distinctive System: Origins and Impact of U.S. Unemployment Compensation," NBER Chapters,in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 227-264 National Bureau of Economic Research, Inc.
    17. Michael Huberman & Chris Minns, 2005. "Hours of Work in Old and New Worlds: The Long View, 1870-2000," The Institute for International Integration Studies Discussion Paper Series iiisdp95, IIIS.

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