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

In: Small Differences II: Public Policies 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.
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Suggested Citation

  • Kory Kroft & Fabian Lange & Matthew J. Notowidigdo & Matthew Tudball, 2016. "Long Time Out: Unemployment and Joblessness in Canada and the United States," NBER Chapters, in: Small Differences II: Public Policies in Canada and the United States, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14319
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    Cited by:

    1. is not listed on IDEAS
    2. Rebecca M. Aldrich & Debbie Laliberte Rudman & Na Eon (Esther) Park & Suzanne Huot, 2020. "Centering the Complexity of Long-Term Unemployment: Lessons Learned from a Critical Occupational Science Inquiry," Societies, MDPI, vol. 10(3), pages 1-22, September.
    3. Etienne Lale, 2024. "Assessing Labour Market Conditions in Canada with Public-Use Microdata," Canadian Public Policy, University of Toronto Press, vol. 50(2), pages 217-231, May.
    4. Yuan, Wen Jin & Antonio, Katherine & Butcher, Arona, 2022. "Incorporating Industry-Specific Wages and Unemployment into the GTAP Model: U.S.-EU Trade Liberalization Scenarios," Conference papers 333450, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Pierre Brochu & Jonathan Crechet, 2022. "Survey Non-Response in COVID-19 Times: The Case of the Labour Force Survey," Canadian Public Policy, University of Toronto Press, vol. 48(3), pages 451-472, September.
    6. Rui Castro & Fabian Lange & Markus Poschke, 2024. "Labor Force Transitions," NBER Working Papers 33200, National Bureau of Economic Research, Inc.
    7. 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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