Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?

Andreas Hornstein and Mingwei Yuan

Staff Working Papers from Bank of Canada

Abstract: The authors construct a simple general equilibrium model of unemployment and calibrate it to the Canadian economy. Job creation and destruction are endogenous. In this model, they consider several potential factors that could contribute to the long-run increase in the Canadian unempoloyment rate: a more generous unemployment insurance system, higher layoff costs, higher discretionary taxes, and a slower rate of productivity growth. They find that in the model economy the impact of all of these factors on the unemployment rate is small.

Keywords: Economic Models; Fiscal Policy; Labour Markets (search for similar items in EconPapers)
JEL-codes: E2 E6 J4 (search for similar items in EconPapers)
Pages: 73 pages
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.bankofcanada.ca/wp-content/uploads/2010/05/wp98-19.pdf

Related works:
Journal Article: Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate? (1999)
Working Paper: Can a matching model explain the long-run increase in Canada's unemployment rate? (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:98-19

Access Statistics for this paper

More papers in Staff Working Papers from Bank of Canada 234 Wellington Street, Ottawa, Ontario, K1A 0G9, Canada. Contact information at EDIRC.
Bibliographic data for series maintained by ().