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Unemployment Insurance Eligibility and the School to Work Transition in Canada and the United States

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  • Ferrall, Christopher

Abstract

To study how the design of unemployment insurance affects people leaving school to find jobs, a model of job search in the presence of UI is developed and estimated for the US and Canada. The level of UI benefits depends upon previous earnings, a fact which creates opposing incentives for unemployed people not receiving benefits. Which of these opposing incentives dominates differs across demographic groups within each country. The major differences in the transition from school to work between Canada and the U.S. are a lower rate of job offer arrivals and a lower rate of offer rejections in Canada. Within each country, offer arrival rates differ across individuals much more than offer rejection rates.
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Suggested Citation

  • Ferrall, Christopher, 1996. "Unemployment Insurance Eligibility and the School to Work Transition in Canada and the United States," Queen's Institute for Economic Research Discussion Papers 273308, Queen's University - Department of Economics.
    • Handle: RePEc:ags:queddp:273308
    DOI: 10.22004/ag.econ.273308
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    References listed on IDEAS

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    1. is not listed on IDEAS
    2. Victor Aguirregabiria, 2006. "Another Look at the Identification of Dynamic Discrete Decision Processes: With an Application to Retirement Behavior," 2006 Meeting Papers 169, Society for Economic Dynamics.
    3. Andrey Launov & Klaus Wälde, 2013. "Estimating Incentive And Welfare Effects Of Nonstationary Unemployment Benefits," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(4), pages 1159-1198, November.
    4. repec:lan:wpaper:1023 is not listed on IDEAS
    5. Andrey Launov & Irene Schumm & Klaus Walde, 2008. "Estimating insurance and incentive effects of labour market reforms," CDMA Conference Paper Series 0813, Centre for Dynamic Macroeconomic Analysis.
    6. Koop, Gary, 2001. "Bayesian inference in models based on equilibrium search theory," Journal of Econometrics, Elsevier, vol. 102(2), pages 311-338, June.
    7. Haan, Peter & Prowse, Victoria L., 2010. "The Design of Unemployment Transfers: Evidence from a Dynamic Structural Life-Cycle Model," IZA Discussion Papers 4792, Institute of Labor Economics (IZA).
    8. Jesús Fernández-Villaverde & Juan F. Rubio-Ramírez & Manuel S. Santos, 2006. "Convergence Properties of the Likelihood of Computed Dynamic Models," Econometrica, Econometric Society, vol. 74(1), pages 93-119, January.
    9. Ferrall, Christopher & Betts, Julian & Finnie, Ross, 2000. "Passage des etudes au travail chez les diplomes des universites canadiennes : duree de recherche d'un premier emploi, 1982-1990," Direction des études analytiques : documents de recherche 2000141f, Statistics Canada, Direction des études analytiques.
    10. van der Klaauw, Bas & van Vuuren, Aico & Berkhout, Peter, 2004. "Labor Market Prospects, Search Intensity and the Transition from College to Work," IZA Discussion Papers 1176, IZA Network @ LISER.
    11. Ferrall, Christopher & Betts, Julian & Finnie, Ross, 2000. "The Transition to Work for Canadian University Graduates: Time to First Job, 1982-1990," Analytical Studies Branch Research Paper Series 2000141e, Statistics Canada, Analytical Studies Branch.
    12. van der Klaauw, Bas & van Vuuren, Aico, 2010. "Job search and academic achievement," European Economic Review, Elsevier, vol. 54(2), pages 294-316, February.
    13. Keane, Michael P. & Todd, Petra E. & Wolpin, Kenneth I., 2011. "The Structural Estimation of Behavioral Models: Discrete Choice Dynamic Programming Methods and Applications," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 4, pages 331-461, Elsevier.
    14. J Taylor & A N Nguyen, 2003. "Transition from school to first job: the influence of educational attainment," Working Papers 540112, Lancaster University Management School, Economics Department.
    15. Aurora Galego & António Caleiro, 2009. "Understanding the Transition to Work for First Degree University Graduates in Portugal: The case of the University of Évora," Economics Working Papers 06_2009, University of Évora, Department of Economics (Portugal).
    16. Victor Aguirregabiria, 2005. "Another Look at the Identification of Dynamic Discrete Decision Processes," Econometrics 0504006, University Library of Munich, Germany.

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