Unemployment Insurance and Male Unemployment Duration in Canada

John Ham and Samuel Rea

No 592, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

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.

Keywords: unemployment duration; unemployment insurance; duration dependence; heterogeneity; Canada (search for similar items in EconPapers)
JEL-codes: D46 D49 (search for similar items in EconPapers)
Date: 1986-08
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Citations: View citations in EconPapers (1)

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Journal Article: Unemployment Insurance and Male Unemployment Duration in Canada (1987)
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