Unemployment Insurance and Male Unemployment Duration in Canada

Author
Keywords
Abstract

A model of unemployment duration is estimated with weekly micro
data on a sample of Canadian men during the 1975 through 1980 period.
Entitlement provisions in the unemployment insurance program and demand
conditions are found to have a significant impact on the probability of
leaving unemployment. The probability of a worker leaving unemployment
declines with duration of unemployment, holding unemployment insurance
entitlement constant. When entitlement is allowed to vary, the probability of leaving first falls and then generally rises with unemployment
duration as the declining entitlement induces a greater willingness to
accept offers or search more intensively. These results are robust to
alternative specifications of duration dependence and to allowing for
person—specific unobserved heterogeneity.

Year of Publication
1986
Number
212
Date Published
08/1986
Publication Language
eng
Citation Key
Journal of Labor Economics, Vol. 5, No. 3, July, 1987
URL
Working Papers