Contingent, Temporary Unemployment Insurance’s Impacts on Employment and Unemployment Durations

Kailing Shen

No 2959, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies contingent, temporary unemployment insurance (UI) coverage’s impacts on employment and unemployment durations using a duration model extended with heaping considerations and a recent Canadian panel data. A unique source of identification here is the Employment Insurance (EI) reform of Canada in the 1996. Based on the estimated coefficients from the duration models, the simulations suggest that UI increases unemployment rates by 2% and 5% in the non-seasonal and seasonal sectors respectively.

Keywords: employment durations; unemployment durations; unemployment insurance; heaping effect (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007-07
New Economics Papers: this item is included in nep-ias and nep-lab
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