Labor Market Adjustment in Canada and the United States
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper provides a quantitative assessment of the relative importance of different labor market adjustment mechanisms in Canada and the United States and also examines the effects of the unemployment insurance (UI) system on labor market adjustment. At the aggregate level, employment growth shocks result in similar unemployment rate responses but smaller wage responses in Canada relative to the United States. Although overall UI generosity has increased aggregate unemployment persistence in Canada, the endogenous component of UI has affected unemployment persistence only marginally. The lower degree of aggregate real wage flexibility in Canada has not been an important determinant of unemployment persistence.
Series:
Working Paper No. 1997/002
Subject:
Employment Labor Labor markets Real wages Unemployment Unemployment rate
English
Publication Date:
January 1, 1997
ISBN/ISSN:
9781451841725/1018-5941
Stock No:
WPIEA0021997
Pages:
24
Please address any questions about this title to publications@imf.org