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The Impact of Bill C-12 on New Entrants and Re-Entrants

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  • Kapsalis, Constantine

Abstract

This report examines the impact on Employment Insurance (EI) eligibility of the increase in the entrance requirement for new entrants and re-entrants, under Bill C-12, from 20 to 26 weeks (or equivalent 910 hours). The results of the analysis suggest that: a) On average, about 36,500 new entrants/re-entrants were affected negatively each month in 1997 — i.e. did not qualify for EI, but would have qualified under the old rules. b) An additional 9,100 new entrants/re-entrants could have also been affected negatively each month, but were able to work additional hours to meet the higher entrance requirement. c) As a result, the average monthly number of regular beneficiaries in 1997 was reduced by about 5.8 percent (from a potential 633,200 to 596,700); correspondingly, total regular benefit payments in the entire 1997 were lower by about $520 million. d) The new rules for new entrants/re-entrants had a greater negative effect on claimants with monthly family incomes under $2,000, and those who received social assistance since the loss of their job. The above results are based on an ex ante analysis of the Canadian Out of Employment Panel (COEP) survey. The cohort analyzed consists of those individuals who terminated a job in the last quarter of 1995. To reconstruct work and claim histories, the COEP data were supplemented by the respondents’ Records of Employment and EI Status Vectors.

Suggested Citation

  • Kapsalis, Constantine, 2000. "The Impact of Bill C-12 on New Entrants and Re-Entrants," MPRA Paper 26137, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:26137
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    File URL: https://mpra.ub.uni-muenchen.de/26137/1/MPRA_paper_26137.pdf
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    References listed on IDEAS

    as
    1. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
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    3. Louis N. Christofides & C. J. McKenna, 1993. "Employment Flows and Job Tenure in Canada," Canadian Public Policy, University of Toronto Press, vol. 19(2), pages 145-161, June.
    4. 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.
    5. David A. Green & Timothy Sargent, 1998. "Unemployment Insurance and Job Durations: Seasonal and Non-Seasonal Jobs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 247-278, May.
    6. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
    7. Paul Storer & Marc A. Van Audenrode, 1995. "Unemployment Insurance Take-Up Rates in Canada: Facts, Determinants, and Implications," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 822-835, November.
    8. Shelley A. Phipps, 1991. "Behavioural Response to UI Reform in Constrained and Unconstrained Models of Labour Supply," Canadian Journal of Economics, Canadian Economics Association, vol. 24(1), pages 34-54, February.
    9. 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.
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    More about this item

    Keywords

    unemployment insurance; employment insurance;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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