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