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Accounting for Unemployment--A Labour Market Perspective

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  • Stefan F. Kaliski

Abstract

The author examines whether prolonged high unemployment in Canada can be attributed to various "structural" causes, rather than t o demand deficiency as found by macroeconometric models. The answer i s largely negative. Neither the dispersion of sectoral growth rates n or excessive and rigid real wages can convincingly account for most u nemployment. Contentions to the contrary are based upon inappropriate partial analyses. Enduring shifts in industrial structure have, if a nything, been declining. Labor mobility is high. Much unemployment la sts too long to be frictional. Fuller quantitative understanding of t he nature of unemployment can be achieved only in a more general fram ework.

Suggested Citation

  • Stefan F. Kaliski, 1987. "Accounting for Unemployment--A Labour Market Perspective," Canadian Journal of Economics, Canadian Economics Association, vol. 20(4), pages 665-693, November.
    • Handle: RePEc:cje:issued:v:20:y:1987:i:4:p:665-93
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    Cited by:

    1. Cahill, Miles B., 2000. "Exploring the interaction between efficiency wages and labor market frictions," The Quarterly Review of Economics and Finance, Elsevier, vol. 40(1), pages 121-137.
    2. Kevin Lang & Jay Zagorsky, 1998. "Why are Canadian and US Unemployment Rates So Highly Correlated?," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 56-71, February.

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