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The Effect of Unemployment Insurance Benefits on Income Inequality in the Canadian Provinces

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  • Galen J. Countryman

Abstract

This study provides an analysis of the relative progressivity of the immediate impact of the unemployment insurance (UI) program in Canada from 1975 to 1996 at both the national and provincial level. In addition, the welfare gain from the reduction in income inequality was estimated (given certain normative assumptions) to be between 1 and 2 percent of aggregate income nationally. This estimate can be compared with the efficiency costs from the labour market implications of the program. Given the existing policy debate on the UI program, this should prove to be both an interesting and important component of any future policy discussions concerning the UI systems.

Suggested Citation

  • Galen J. Countryman, 1999. "The Effect of Unemployment Insurance Benefits on Income Inequality in the Canadian Provinces," Canadian Public Policy, University of Toronto Press, vol. 25(4), pages 539-556, December.
    • Handle: RePEc:cpp:issued:v:25:y:1999:i:4:p:539-556
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    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
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    4. Lars Osberg, 1979. "Unemployment Insurance in Canada: A Review of the Recent Amendments," Canadian Public Policy, University of Toronto Press, vol. 5(2), pages 223-235, Spring.
    5. Jenkins, S., 1988. "The Measurement Of Economic Inequality," Papers 170, Australian National University - Department of Economics.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    7. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
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    Cited by:

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    2. Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," CERDI Working papers halshs-00554261, HAL.
    3. Nong Zhu & Cecile Batisse, 2014. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal," CIRANO Working Papers 2014s-05, CIRANO.
    4. Eric Levin & Robert Wright, 2001. "Unemployment insurance, moral hazard, and economic growth," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 373-384, November.
    5. Glawion, Rene & Puche, Marc & Haller, Frédéric, 2020. "A General Equilibrium Model of Earnings, Income, and Wealth," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224580, Verein für Socialpolitik / German Economic Association.
    6. Nong Zhu & Cécile Batisse, 2011. "L'effet des politiques sociales sur l'emploi des nouveaux immigrants à Montréal :une analyse longitudinale et conjoncturelle," Working Papers halshs-00554261, HAL.
    7. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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