Unemployment Insurance and Job Duration in Canada

Louis Christofides and C J McKenna

Journal of Labor Economics, 1996, vol. 14, issue 2, 286-312

Abstract: The authors use data from the Canadian two-year longitudinal Labour Market Activity Survey of 1986-87 to estimate the effect of the Unemployment Insurance (UI) system on job duration. Particular attention is focused on the 'entrance requirements' of the UI system, which relate eligibility for UI benefits to an individual's recent employment history. The article makes operational the UI entrance requirement provisions which take into account variations in the regional unemployment rate. Controlling for many personal and job characteristics, the authors find evidence that a significant number of jobs terminate when they have reached the duration that would permit a UI claim. Copyright 1996 by University of Chicago Press.

Date: 1996
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