Unemployment Insurance and Quits in Canada

Arthur Sweetman and Peter Kuhn

Canadian Journal of Economics, 1998, vol. 31, issue 3, 549-572

Abstract: In two recent policy changes, the Canadian government acted to limit the eligibility of job quitters and those dismissed for cause for unemployment insurance (UI). The authors study the effects of these policy changes on separation behavior. They find no evidence that these policy changes induced a relabeling of separations towards UI eligible reasons, but the authors do find quite different responses across demographic groups. Women and young men are inhibited from quitting their jobs by the new quit penalties, but prime-age males seem unaffected by the large increase in the cost of quitting imposed by the changes.

Date: 1998
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