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The sources of unemployment in Canada, 1967-91: evidence from a panel of regions and demographic groups |
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| Authors: | Fortin P; Keil M; Symons J |
| Institution: | z Department of Economics, Universit du Qubec Montral, Canada Canadian Institute for Advanced Research y Department of Economics, Claremont McKenna College, 500 E Ninth St., Claremont, CA 91711, USA w Department of Economics, University College, London, UK Centre for Economic Performance, London School of Economics, London, UK |
| Abstract: | We analyze the determinants of Canadian unemployment in a frameworkincorporating demand and supply-side variables: the interestrate, taxation, foreign activity, minimum wages, union density,demographic pressure, unemployment insurance, terms of trade.The model is estimated with 500 observations for five Canadianregions and four demographic groups, 1967-91. We provide a comprehensivepicture of the macroeconomic and structural causes of unemploymentwith data combining the advantages of macroeconomic time seriesand microeconomic cross sections. The long-term rise in Canadianunemployment since 1960 is attributed to higher real interestrates, the UI reform of 1972, and slightly adverse net demographicpressure. |
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