The Beveridge curve and unemployment fluctuations in Canada

Richard Archambault and Mario Fortin ()

Canadian Journal of Economics, 2001, vol. 34, issue 1, 58-81

Abstract: We estimate the impact of cyclical, sectoral, and participation shocks and that of the trend on both the Canadian unemployment rate and the job vacancy rate over the 1969 to 1998 period. We conclude that a rise in the Canadian unemployment rate of almost 5 percentage units occurred between 1972 and 1982 because of participation rate shocks and a trend movement. Because the trend also explains the leftward shift of the Beveridge curve observed in the 1990s, this shift cannot be interpreted as a decline in the natural unemployment rate.

Date: 2001
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