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Structural Determinants of the Natural Rate of Unemployment in Canada

  • Coe, David T.

This paper presents empirical estimates of the policy and structural determinants of the natural rate of unemployment in Canada. The paper begins with a discussion of structural features of the economy which impinge on the adjustment of real wages to their equilibrium level. Estimates are presented showing how the generosity of the unemployment insurance system is related to past levels of unemployment. The empirical results indicate that government policies have been largely responsible for changes in the natrual rate, and hence can contribute to a reduction in the natural rate in the medium term.

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File URL: http://mpra.ub.uni-muenchen.de/8623/1/MPRA_paper_8623.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8623.

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Date of creation: 06 Apr 1989
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Handle: RePEc:pra:mprapa:8623
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  1. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," NBER Working Papers 1950, National Bureau of Economic Research, Inc.
  2. Lindbeck, Assar & Snower, Dennis J, 1988. "Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach," American Economic Review, American Economic Association, vol. 78(1), pages 167-88, March.
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