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Unemployment Compensation Programs Effect on the Employment of Young Men: A Cross-National Comparison of Canadian, British and American Unemployment Policies

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  • Tess Heintze

Abstract

This study compares the receipt rates of unemployment compensation of American young men (aged 18-25) with those from Canada and the United Kingdom. The results indicate that American young men are far less likely to receive compensation for their unemployment than are youth from the other two nations. Pooling the data from all three nations together we find that receipt of unemployment insurance in the prior year is complementary to current work participation whereas unemployment assistance benefits act as a work disincentive. This analysis indicates that the most effective policy alternatives are to increase the length of time that young men can accept insurance benefits and/or to raise the amount of income recipients can retain before the reduction of insurance benefits.

Suggested Citation

  • Tess Heintze, 2002. "Unemployment Compensation Programs Effect on the Employment of Young Men: A Cross-National Comparison of Canadian, British and American Unemployment Policies," LIS Working papers 309, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:309
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    1. Frederick J. Tannery, 1983. "Search Effort and Unemployment Insurance Reconsidered," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 432-440.
    2. Timothy M. Smeeding & Peter Gottschalk, 1998. "The International Evidence on Income Distribution in Modern Economies: Where Do We Stand?," International Economic Association Series, in: Yair Mundlak (ed.), Contemporary Economic Issues, chapter 3, pages 39-61, Palgrave Macmillan.
    3. Dennis Sullivan & Timothy Smeeding, 1997. "Educational Attainment and Earnings Inequality in Eight Nations," LIS Working papers 164, LIS Cross-National Data Center in Luxembourg.
    4. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
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