Unemployment and Unemployment Insurance -- Testing Some Corollaries
The paper attempts to test one widely accepted corollary of the proposition that the availability of or increases in unemployment benefits have serious disincentive effects: namely, that the seasonality of employment will increase. The results based on an analysis of the dispersion of seasonal factors in employment in Canada, by industry group and region, for 1961 to 1974, are compatible with the 1971 revision of the Unemployment Insurance Act having had such an effect.
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