Contingent, Temporary Unemployment Insurance's Impacts on Employment and Unemployment Durations

26 Pages Posted: 30 Aug 2007

See all articles by Kailing Shen

Kailing Shen

Xiamen University; IZA Institute of Labor Economics

Date Written: July 2007

Abstract

This paper studies contingent, temporary unemployment insurance (UI) coverage's impacts on employment and unemployment durations using a duration model extended with heaping considerations and a recent Canadian panel data. A unique source of identification here is the Employment Insurance (EI) reform of Canada in the 1996. Based on the estimated coefficients from the duration models, the simulations suggest that UI increases unemployment rates by 2% and 5% in the non-seasonal and seasonal sectors respectively.

Keywords: unemployment insurance, unemployment durations, employment durations, heaping effect

JEL Classification: J65, J64

Suggested Citation

Shen, Kailing, Contingent, Temporary Unemployment Insurance's Impacts on Employment and Unemployment Durations (July 2007). Available at SSRN: https://ssrn.com/abstract=1010591 or http://dx.doi.org/10.2139/ssrn.1010591

Kailing Shen (Contact Author)

Xiamen University ( email )

Xiamen, Fujian 361005
China

HOME PAGE: http://www.wise.xmu.edu.cn/faculty/shen

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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