Coe, David T. (1989): Structural Determinants of the Natural Rate of Unemployment in Canada.
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This paper presents empirical estimates of the policy and structural determinants of the natural rate of unemployment in Canada. The paper begins with a discussion of structural features of the economy which impinge on the adjustment of real wages to their equilibrium level. Estimates are presented showing how the generosity of the unemployment insurance system is related to past levels of unemployment. The empirical results indicate that government policies have been largely responsible for changes in the natrual rate, and hence can contribute to a reduction in the natural rate in the medium term.
|Item Type:||MPRA Paper|
|Original Title:||Structural Determinants of the Natural Rate of Unemployment in Canada|
|Keywords:||Natural rate of unemployment; Canada|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital|
|Depositing User:||David/T Coe|
|Date Deposited:||07. May 2008 14:46|
|Last Modified:||11. Feb 2013 20:50|
Blanchard, O. and L. Summers, 1986, "Hysteresis and the European Unemployment Problem," in S. Fischer (ed.), NBER Macroeconomics Annual (MIT Press).
Samson, L., 1985, "A Study of the Impact of Sectoral Shifts on Aggregated Unemployment in Canada," Canadian Journal of Economics.
Lindbeck, A. and D. Snower, 1988, "Cooperation, Harassment, and Involuntary Unemployment: An Insider-Outsider Approach," American Economic Review.