IDEAS home Printed from https://ideas.repec.org/h/nbr/nberch/11148.html
   My bibliography  Save this book chapter

A Comparative Analysis of Unemployment in Canada and the United States

In: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States

Author

Listed:
  • David Card
  • W. Craig Riddell

Abstract

Throughout the late 1980s unemployment rates remained 2-3 percentage points higher in Canada than the U.S. We use individual microdata from the U.S. Current Population Survey and the Canadian Survey of Consumer Finances to study the emerging unemployment gap between the two countries. For women, we find that the relative rise in Canadian unemployment occurred with relative increases in per capita weeks of work. The unemployment gap for Canadian women was driven by a rise in the probability that nonworkers are classified as "unemployed" as opposed to "out of the labor force". For men, the increase in unemployment was accompanied by a relative decrease in Canadian employment rates, and an increase in the probability that men with no weeks of work are classified as "in the labor force". A comparison of annual work patterns and income recipiency in the two countries suggests that Canadians of both sexes have increasingly adjusted their labor supply to the parameters of the Canadian Unemployment Insurance system.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • 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.
  • Handle: RePEc:nbr:nberch:11148
    as

    Download full text from publisher

    File URL: http://www.nber.org/chapters/c11148.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ross D. Milbourne & Douglas D. Purvis & W. David Scoones, 1991. "Unemployment Insurance and Unemployment Dynamics," Canadian Journal of Economics, Canadian Economics Association, vol. 24(4), pages 804-826, November.
    2. Orley Ashenfelter & David Card, 1986. "Why Have Unemployment Rates in Canada and the U.S. Diverged?," Working Papers 584, Princeton University, Department of Economics, Industrial Relations Section..
    3. 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.
    4. repec:fth:prinin:276 is not listed on IDEAS
    5. Rebecca M. Blank & David E. Card, 1991. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1157-1189.
    6. Orley Ashenfelter & David Card, 1986. "Why Have Unemployment Rates in Canada and the U.S. Diverged?," Working Papers 584, Princeton University, Department of Economics, Industrial Relations Section..
    7. Phillip B. Levine, 1990. "Contemporaneous vs. Retrospective Unemployment: Through the Filter of Memory or the Muddle of the Current Population Survey?," Working Papers 656, Princeton University, Department of Economics, Industrial Relations Section..
    8. Anderson, Patricia M & Meyer, Bruce D, 1993. "Unemployment Insurance in the United States: Layoff Incentives and Cross Subsidies," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 70-95, January.
    9. Chinhui Juhn, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 79-121.
    10. George A. Akerlof & Janet L. Yellen, 1985. "Unemployment Through the Filter of Memory," The Quarterly Journal of Economics, Oxford University Press, vol. 100(3), pages 747-773.
    11. Ashenfelter, Orley & Card, David, 1986. "Why Have Unemployment Rates in Canada and the United States Diverged?," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages 171-195, Supplemen.
    12. 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.
    13. Phillip Levine, 1990. "Contemporaneous vs. Retrospective Unemployment: Through the Filter of Memory or the Muddle of the Current Population Survey?," Working Papers 656, Princeton University, Department of Economics, Industrial Relations Section..
    14. John McCallum, 1987. "Unemployment in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 20(4), pages 802-822, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:11148. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.