IDEAS home Printed from https://ideas.repec.org/a/eaa/eerese/v12y2012i1_2.html
   My bibliography  Save this article

Provincial Disparities and Structural Unemployment in Canada

Author

Listed:
  • Sandra Hanson MCPHERSON
  • Oscar FLORES

Abstract

We examine Canadian provincial structural unemployment by estimating the unemployment-vacancy relationship (Beveridge curve) for ten provinces and find that from 1988 to 2002 structural unemployment fell primarily in western provinces. A breakdown of the causes of provincial structural unemployment using a SURE estimation reveals that the generosity of the employment insurance is an important variable in the West while the mix of structural variables appear to be important for central and eastern Canada. We are unaware of any other studies evaluating the Beveridge curve at the provincial level for this period which was one of historically high unemployment for Canada.

Suggested Citation

  • Sandra Hanson MCPHERSON & Oscar FLORES, 2012. "Provincial Disparities and Structural Unemployment in Canada," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 25-42.
    • Handle: RePEc:eaa:eerese:v:12:y2012:i:1_2
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/reviews/eers1212.pdf
    Download Restriction: No.
    ---><---

    References listed on IDEAS

    as
    1. Richard Archambault & Mario Fortin, 2001. "The Beveridge curve and unemployment fluctuations in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(1), pages 58-81, February.
    2. Darby, Michael R & Haltiwanger, John C & Plant, Mark W, 1985. "Unemployment Rate Dynamics and Persistent Unemployment under Rational Expectations," American Economic Review, American Economic Association, vol. 75(4), pages 614-637, September.
    3. Howard J. Wall & Gylfi Zoega, 2002. "The British Beveridge curve: A tale of ten regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(3), pages 257-276, July.
    4. Katharine G. Abraham, 1987. "Help-Wanted Advertising, Job Vacancies, and Unemployment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1), pages 207-248.
    5. repec:bla:obuest:v:64:y:2002:i:3:p:261-80 is not listed on IDEAS
    6. Hoyt Bleakley & Jeffrey C. Fuhrer, 1997. "Shifts in the Beveridge Curve, job matching, and labor market dynamics," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 3-19.
    7. Lars Osberg & Zhengxi Lin, 2000. "How Much of Canada's Unemployment is Structural?," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 141-157, July.
    8. Reid, Frank & Meltz, Noah M, 1979. "Causes of Shifts in the Unemployment-Vacancy Relationship: An Empirical Analysis for Canada," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 470-475, August.
    9. Denise Côté & Doug Hostland, 1996. "An Econometric Examination of the Trend Unemployment Rate in Canada," Staff Working Papers 96-7, Bank of Canada.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reinhold Kosfeld & Christian Dreger & Hans-Friedrich Eckey, 2008. "On the stability of the German Beveridge curve: a spatial econometric perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(4), pages 967-986, December.
    2. Zhang, Xuelin & Morissette, Rene, 2001. "Which Firms Have High Job Vacancy Rates in Canada?," Analytical Studies Branch Research Paper Series 2001176e, Statistics Canada, Analytical Studies Branch.
    3. Kasrin Zein & Lang Guenter, 2013. "Estimating the Beveridge Curve of Egypt: An Econometric Study for the Period 2004 to 2010," Review of Middle East Economics and Finance, De Gruyter, vol. 8(3), pages 1-16, January.
    4. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    5. Brian Silverstone, 2004. "Help Wanted in New Zealand: The ANZ Bank Job Advertisement Series," Working Papers in Economics 04/03, University of Waikato.
    6. Zhang, Xuelin & Morissette, Rene, 2001. "Quelles entreprises ont des taux de vacance eleves au Canada?," Direction des études analytiques : documents de recherche 2001176f, Statistics Canada, Direction des études analytiques.
    7. Robert G. Valletta, 2005. "Why has the U.S. Beveridge curve shifted back? new evidence using regional data," Working Paper Series 2005-25, Federal Reserve Bank of San Francisco.
    8. Carsten Ochsen, 2009. "On the measurement of mismatch," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 405-409.
    9. Andrés Álvarez, 2016. "La Curva de Beveridge en Colombia (1976-2014): Cambios cíclicos y estructurales," Borradores de Economia 962, Banco de la Republica de Colombia.
    10. Shigeru Fujita & Garey Ramey, 2005. "The Dynamic Beveridge Curve," Macroeconomics 0509026, University Library of Munich, Germany.
    11. Kory Kroft & Devin G. Pope, 2014. "Does Online Search Crowd Out Traditional Search and Improve Matching Efficiency? Evidence from Craigslist," Journal of Labor Economics, University of Chicago Press, vol. 32(2), pages 259-303.
    12. Jukka Petteri Lahtonen & Sanna-Mari Hynninen, 2005. "Does population density matter in the matching process of heterogeneous job seekers and vacancies?," ERSA conference papers ersa05p438, European Regional Science Association.
    13. Elva BOVA & João TOVAR JALLES & Christina KOLERUS, 2018. "Shifting the Beveridge curve: What affects labour market matching?," International Labour Review, International Labour Organization, vol. 157(2), pages 267-306, June.
    14. Mary C. Daly & Bast Hobijn & Ayşeqül Şahin & Robert G. Valletta, 2012. "Rynki pracy w modelu poszukiwań i dopasowań: czy naturalna stopa bezrobocia rzeczywiście wzrosła?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 11-12, pages 147-172.
    15. Mary Daly & Bart Hobijn & Aysegul Sahin & Robert Valletta, 2011. "A Rising Natural Rate of Unemployment: Transitory or Permanent?," Tinbergen Institute Discussion Papers 11-160/3, Tinbergen Institute.
    16. Daly, Mary C. & Hobijn, Bart & Valletta, Robert G., 2011. "The Recent Evolution of the Natural Rate of Unemployment," IZA Discussion Papers 5832, Institute of Labor Economics (IZA).
    17. Marcela Kantová & Šárka Prudká & Markéta Arltová & Magdaléna Kotýnková, 2018. "Efektivita trhu práce ve světle opatření konceptu flexikurity: příklad České republiky a Švédska v období 20062015 [Efficiency of Labour Market Policy Changes in the Czech Republic and Sweden in 20," Politická ekonomie, Prague University of Economics and Business, vol. 2018(4), pages 411-429.
    18. Dolly Bellani V. & Pablo García S. & Ernesto Pastén H., 2002. "Curva de Beveridge, Vacantes y Desempleo: Chile 1986-2002," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(3), pages 105-119, December.
    19. Hoyt Bleakley & Ann E. Ferris & Jeffrey C. Fuhrer, 1999. "New data on worker flows during business cycles," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 49-76.
    20. Sanna-Mari Hynninen & Jukka Lahtonen, 2007. "Does population density matter in the process of matching heterogeneous job seekers and vacancies?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(5), pages 397-410, December.

    More about this item

    Keywords

    Beveridge curve in Canada; Structural unemployment in Canada; Provincial unemployment in Canada;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:eerese:v:12:y2012:i:1_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. Carmen Guisan (email available below). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.