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The Canada-US Unemployment Rate Gap: A New Look with a New Decomposition for Cross-Country Differences in Unemployment Rates

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  • Michele Campolieti

Abstract

This paper presents a decomposition of the changes in the Canada-US unemployment rate gap using measures of the flow rates into unemployment (the inflow hazard) and out of unemployment (the outflow hazard). The estimates indicate that most of the changes in the unemployment rate gap between 1981 and 2009 are due to changes in the outflow hazard (i.e., the duration of unemployment spells). The relative importance of the inflow and outflow hazard effects on the unemployment rate gap changes over time, but the outflow hazard tends to account for most of the changes in the unemployment rate gap since 1997.

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  • Michele Campolieti, 2012. "The Canada-US Unemployment Rate Gap: A New Look with a New Decomposition for Cross-Country Differences in Unemployment Rates," Canadian Public Policy, University of Toronto Press, vol. 38(3), pages 411-435, September.
    • Handle: RePEc:cpp:issued:v:38:y:2012:i:3:p:411-435
    DOI: 10.3138/cpp.38.3.411
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    Cited by:

    1. Michele Campolieti & Morley Gunderson & Byron Lee, 2014. "Minimum Wage Effects On Permanent Versus Temporary Minimum Wage Employment," Contemporary Economic Policy, Western Economic Association International, vol. 32(3), pages 578-591, July.
    2. Michele Campolieti & Deborah Gefang & Gary Koop, 2013. "A new look at variation in employment growth in Canada," Working Papers 26145565, Lancaster University Management School, Economics Department.

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