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Intergenerational Influences on the Receipt of Unemployment Insurance in Canada and Sweden

Author

Listed:
  • Bjorn, Gustafsson
  • Corak, Miles
  • Gustafsson, Bjorn
  • Osterberg, Torun

Abstract

The objective of this paper is to examine the extent to which an individual's use of unemployment insurance (UI) as a young adult is influenced by past experience with the program, and by having had a parent who also collected UI. A major methodological challenge is to determine the extent to which the intergenerational correlation of UI status is "spurious" or causal. Both the time to a first UI claim and the entire sequence of claims over an extended period are examined using two alternative ways of controlling for unobserved heterogeneity. The analysis is based upon longitudinal data on a cohort of young Canadian and Swedish men. It is found that parental use of UI shortens the time to a first UI claim in Canada, but not in Sweden. Subsequent participation in the Canadian program is influenced by parental UI history. In Sweden individual learning through past participation in UI - not family background - is the dominant avenue determining repeated participation.

Suggested Citation

  • Bjorn, Gustafsson & Corak, Miles & Gustafsson, Bjorn & Osterberg, Torun, 2001. "Intergenerational Influences on the Receipt of Unemployment Insurance in Canada and Sweden," Analytical Studies Branch Research Paper Series 2001159e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:2001159e
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    References listed on IDEAS

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    1. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
    2. 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.
    3. O'Neill, Donal & Sweetman, Olive, 1998. "Intergenerational Mobility in Britain: Evidence from Unemployment Patterns," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 431-447, November.
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    Citations

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    Cited by:

    1. Beaulieu, Nicolas & Duclos, Jean-Yves & Fortin, Bernard & Rouleau, Manon, 2001. "An Econometric Analysis of Intergenerational Reliance on Social Assistance," Cahiers de recherche 0116, Université Laval - Département d'économique.
    2. Andersson, Fredrik & Konrad, Kai A., 2001. "Globalization and Human Capital Formation," IZA Discussion Papers 245, Institute for the Study of Labor (IZA).
    3. Baldwin, John R. & Peters, Valerie, 2001. "Training as a Human Resource Strategy: The Response to Staff Shortages and Technological Change," Analytical Studies Branch Research Paper Series 2001154e, Statistics Canada, Analytical Studies Branch.
    4. Miles Corak, 2001. "Are the Kids All Right? Intergenerational Mobility and Child Well-being in Canada," The Review of Economic Performance and Social Progress,in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1 Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    5. Grady, Patrick & Kapsalis, Constantine, 2002. "The Approach to Seasonal Unemployment in the Nordic Countries: A Comparison with Canada," MPRA Paper 2991, University Library of Munich, Germany.
    6. Ekhaugen, Tyra, 2005. "Extracting the causal component from the intergenerational correlation in unemployment," Memorandum 21/2005, Oslo University, Department of Economics.
    7. Orsetta Causa & Catherine Chapuis, 2009. "Equity in Student Achievement Across OECD Countries: An Investigation of the Role of Policies," OECD Economics Department Working Papers 708, OECD Publishing.

    More about this item

    Keywords

    Employment insurance; social assistance and other transfers; Families; households and housing; Family history; Labour;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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