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What Happens When Canadian Aggregate Rates of Employment and Unemployment Change? A Note on the Differences in Response Patterns Across Age and Sex Groups

Author

Listed:
  • Frank T. Denton
  • Byron G. Spencer

Abstract

The paper considers age-sex patterns of fluctuation of employment, unemployment, labour force participation, hours worked per employee, and hours worked per capita. The patterns are extracted (by regression) from annual data for the period 1976-2011 and expressed in the form of group-to-aggregate elasticities. An additive relationship among the elasticities is noted and used to decompose the variation of per capita hours worked into source contributions. On that basis, participation and employee hours are found to be significant contributors generally over the working age range, but especially among young workers. The results suggest a considerable amount of "hidden" unemployment during cyclical downturns.

Suggested Citation

  • Frank T. Denton & Byron G. Spencer, 2012. "What Happens When Canadian Aggregate Rates of Employment and Unemployment Change? A Note on the Differences in Response Patterns Across Age and Sex Groups," Quantitative Studies in Economics and Population Research Reports 450, McMaster University.
    • Handle: RePEc:mcm:qseprr:450
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    File URL: http://socserv.mcmaster.ca/qsep/p/qsep450.pdf
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    More about this item

    Keywords

    Cyclical labour force behaviour; age-sex employment and unemployment rates; hidden unemployment;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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