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Unemployment and confidence in Canada: Evidence from national and regional level data

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  • Wei-fong Pan

    (Research Institute, First Capital Securities Co., Ltd.)

Abstract

This study investigates the relationship between unemployment and confidence in Canada, using both panel data, which considers cross-sectional dependence and heterogeneity among the regions, and time series causality tests. A unidirectional causal relationship from confidence to unemployment, including total, male, female, long-term, and youth unemployment, is found. This indicates that confidence can predict unemployment. The results further highlight the importance of considering regional differences and cross-sectional dependence when performing the analysis. Moreover, improving confidence would help ameliorate the unemployment problem at the aggregate level and for specific groups, such as youth and females, and reduce the duration of unemployment.

Suggested Citation

  • Wei-fong Pan, 2018. "Unemployment and confidence in Canada: Evidence from national and regional level data," Economics Bulletin, AccessEcon, vol. 38(2), pages 1111-1123.
    • Handle: RePEc:ebl:ecbull:eb-17-00691
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    Cited by:

    1. Lenka Mynaříková & Vít Pošta, 2023. "The Effect of Consumer Confidence and Subjective Well-being on Consumers’ Spending Behavior," Journal of Happiness Studies, Springer, vol. 24(2), pages 429-453, February.
    2. António Bento Caleiro, 2021. "Learning to Classify the Consumer Confidence Indicator (in Portugal)," Economies, MDPI, vol. 9(3), pages 1-12, September.

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    More about this item

    Keywords

    regional unemployment; confidence; youth unemployment; animal spirits;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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