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Unemployment, Marginal Attachment, and Labor Force Participation in Canada and the United States

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  • Stephen R. G. Jones
  • W. Craig Riddell

Abstract

We analyze changes in unemployment, marginal labor force attachment, and participation in Canada and the United States using consistent measurement concepts. We show the importance for the comparative evolution of aggregate unemployment of changes in the fraction of those “wanting work”—the unemployed and marginally attached. We also study changes in the fraction of the nonemployed who are unemployed. Using micro data on labor market transition behavior at these margins, we find remarkably consistent results in the two countries, with the marginally attached displaying behavior lying between unemployment and nonattachment. The three nonemployment states are distinct in both countries.

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  • Stephen R. G. Jones & W. Craig Riddell, 2019. "Unemployment, Marginal Attachment, and Labor Force Participation in Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 399-441.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/703399
    DOI: 10.1086/703399
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    Cited by:

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    3. Thomas Lemieux & Kevin Milligan & Tammy Schirle & Mikal Skuterud, 2020. "Initial Impacts of the COVID-19 Pandemic on the Canadian Labour Market," Canadian Public Policy, University of Toronto Press, vol. 46(S1), pages 55-65, July.
    4. Domenico Ferraro & Giuseppe Fiori, 2023. "Search Frictions, Labor Supply, and the Asymmetric Business Cycle," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(1), pages 5-42, February.
    5. Baert, Stijn, 2021. "The iceberg decomposition: A parsimonious way to map the health of labour markets," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 350-365.
    6. Pierre Brochu & Jonathan Créchet, 2021. "Survey Non-response in Covid-19 Times: The Case of the Labour Force Survey," Working Papers 2109E, University of Ottawa, Department of Economics.
    7. Stephen R.G. Jones & Fabian Lange & W. Craig Riddell & Casey Warman, 2023. "The great Canadian recovery: The impact of COVID‐19 on Canada's labour market," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 791-838, August.
    8. Qian Sun, 2024. "Constructing alternative unemployment statistics in China," Empirical Economics, Springer, vol. 67(4), pages 1319-1354, October.
    9. Daniel Fredriksson, 2020. "Moving targets: Target groups of active labour market policies and transitions to employment in Europe," International Journal of Social Welfare, John Wiley & Sons, vol. 29(3), pages 270-284, July.
    10. Song, Chen & Wei, Chao, 2019. "Unemployment or out of the labor force: A perspective from time allocation," Labour Economics, Elsevier, vol. 61(C).
    11. Simmons, Michael, 2023. "Job-to-job transitions, job finding and the ins of unemployment," Labour Economics, Elsevier, vol. 80(C).
    12. W. Craig Riddell, 2018. "The labor market in Canada, 2000–2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 432-432, April.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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