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Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-Employee Data

  • Corak, Miles

    ()

    (University of Ottawa)

  • Chen, Wen-Hao

    ()

    (OECD)

Administrative data on the universe of employees, firms, and unemployment insurance (UI) recipients in Canada over an 11 year period are used to examine the operation of UI using the firm as the unit of analysis. Persistent transfers through UI are present at both industry and firm levels, and an analysis using firm fixed effect indicates that an important fraction of variation in them can be attributed to firm effects. Calculations of overall efficiency loss are very sensitive to the degree to which firm level information is used. A full appreciation of how UI interacts with the labour market requires recognition of the characteristics and human resource practices of firms.

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File URL: http://ftp.iza.org/dp811.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 811.

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Length: 39 pages
Date of creation: Jun 2003
Date of revision:
Publication status: published in: Research in Labor Economics, 2007, 26, 299-336
Handle: RePEc:iza:izadps:dp811
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  1. Miles Corak, 1993. "Is Unemployment Insurance Addictive? Evidence from the Benefit Durations of Repeat Users," ILR Review, Cornell University, ILR School, vol. 47(1), pages 62-72, October.
  2. Topel, Robert H, 1983. "On Layoffs and Unemployment Insurance," American Economic Review, American Economic Association, vol. 73(4), pages 541-59, September.
  3. repec:cup:cbooks:9780521465618 is not listed on IDEAS
  4. Miles Corak, 1993. "Unemployment Insurance Once Again: The Incidence of Repeat Participation in the Canadian UI Program," Canadian Public Policy, University of Toronto Press, vol. 19(2), pages 162-176, June.
  5. Feldstein, Martin S, 1976. "Temporary Layoffs in the Theory of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 937-57, October.
  6. 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.
  7. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
  8. Patricia M. Anderson & Bruce D. Meyer, 1993. "The Unemployment Insurance Payroll Tax and Interindustry and Interfirm Subsidies," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 111-144 National Bureau of Economic Research, Inc.
  9. repec:cup:cbooks:9780521633574 is not listed on IDEAS
  10. Denis Lawrence, 1989. "An Aggregator Model of Canadian Export Supply and Import Demand Responsiveness," Canadian Journal of Economics, Canadian Economics Association, vol. 22(3), pages 503-21, August.
  11. Miles Corak, 1993. "Is unemployment insurance addictive? Evidence from the benefit durations of repeat users," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(1), pages 62-72, October.
  12. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  13. Lin, Zhengxi, 1998. "Employment Insurance in Canada: Recent Trends and Policy Changes," Analytical Studies Branch Research Paper Series 1998125e, Statistics Canada, Analytical Studies Branch.
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