Long Time Out: Unemployment and Joblessness in Canada and the United States

We compare patterns of unemployment between Canada and the United States during the Great Recession. We document a rise in long-term unemployment in Canada, similar to findings in earlier work. We consider an extended matching model using restricted-access data from the Canadian Labour Force Survey,...

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Bibliographic Details
Published in:Journal of labor economics 2019-07, Vol.37 (S2), p.S355-S397
Main Authors: Kroft, Kory, Lange, Fabian, Notowidigdo, Matthew J., Tudball, Matthew
Format: Article
Language:English
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Summary:We compare patterns of unemployment between Canada and the United States during the Great Recession. We document a rise in long-term unemployment in Canada, similar to findings in earlier work. We consider an extended matching model using restricted-access data from the Canadian Labour Force Survey, which contains information on time since last job for both unemployed and nonparticipants. We create a new historical vacancy series for Canada based on relative employment in “recruiting industries” to construct a monthly Beveridge curve for Canada. Allowing for duration dependence in flows between unemployment and nonparticipation is crucial for explaining long-term joblessness.
ISSN:0734-306X
1537-5307
DOI:10.1086/703258