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The view from a lucky country: explaining the localised unemployment impacts of the Great Recession in Canada

Jean Dubé and Mario Polèse

Cambridge Journal of Regions, Economy and Society, 2016, vol. 9, issue 1, 235-253

Abstract: The article assesses the impact of the Great Recession on 83 Canadian regions, focussing on the unemployment rate as principal indicator. A dual empirical approach is used: examination of regional unemployment rate variations before, during and after the recession using a labour supply and demand framework; examination of the determinants of regional variations via a spatial econometric model. The findings reveal that Canadian labour markets reacted on the whole as expected to the Great Recession, labour supply adjusting to falling labour demand, thus keeping (rising) unemployment rates in check, although rarely completely. Small, rural regions were often most responsive. The primary determinant of regional variations in unemployment rates was found to be variations in neighbouring regions suggesting highly localised impacts.

Date: 2016
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Cambridge Journal of Regions, Economy and Society is currently edited by Susan Christopherson, Betsy Donald, Harry Garretsen, Meric Gertler, Amy Glasmeier, Mia Gray, Michael Kitson, Linda Lobao, Ron Martin, Linda McDowell, Jonathan Michie and Peter Tyler

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Handle: RePEc:oup:cjrecs:v:9:y:2016:i:1:p:235-253.