Long Time Out: Unemployment and Joblessness in Canada and the United States

Kory Kroft, Fabian Lange, Matthew Notowidigdo and Matthew Tudball

Journal of Labor Economics, 2019, vol. 37, issue S2, S355 - S397

Abstract: We compare patterns of unemployment between Canada and the United States during the Great Recession. We document a rise in long-term unemployment in Canada, similar to findings in earlier work. We consider an extended matching model using restricted-access data from the Canadian Labour Force Survey, which contains information on time since last job for both unemployed and nonparticipants. We create a new historical vacancy series for Canada based on relative employment in “recruiting industries” to construct a monthly Beveridge curve for Canada. Allowing for duration dependence in flows between unemployment and nonparticipation is crucial for explaining long-term joblessness.

Date: 2019
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Working Paper: Long Time Out: Unemployment and Joblessness in Canada and the United States (2018)
Chapter: Long Time Out: Unemployment and Joblessness in Canada and the United States (2016)
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