Quantity-Constrainted Household Responses to UI Reform

Shelley Phipps

Economic Journal, 1990, vol. 100, issue 399, 124-40

Abstract: This paper explores the consequences of adopting a household perspective when evaluating proposals for the reform of the Canadian unemployment insurance system. A model of joint behavior that allows demand-side constraints to limit labor-supply choices is estimated. Quantity constraints faced by one spouse are, thus, important determinants of the other's behavior. Predicted household responses to unemployment insurance reform proposals are negligible and differ from those that would be obtained using a model of unconstrained individual behavior. Copyright 1990 by Royal Economic Society.

Date: 1990
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