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The Effect of Unemployment Insurance on Weekly Hours of Work in Canada

22 Pages Posted: 22 Dec 2002  

Jane Friesen

Simon Fraser University

Abstract

Major revisions to the Canadian unemployment insurance program in 1997 created a benefit structure that effectively provides more insurance to workers who are employed for longer workweeks. This anomaly creates an incentive for workers and firms to tailor their weekly work schedules to maximize net program benefits. Analysis of Labour Force Survey data shows that workers and firms responded to these changes by altering weekly hours as expected. This behavioural response demonstrates the sensitivity of hours of work decisions to labour market policies.

JEL Classification: J65

Suggested Citation

Friesen, Jane, The Effect of Unemployment Insurance on Weekly Hours of Work in Canada. Canadian Journal of Economics, Vol. 35, pp. 363-384, 2002. Available at SSRN: https://ssrn.com/abstract=313270

Jane Friesen (Contact Author)

Simon Fraser University ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada
604-291-3508 (Phone)
604-291-5944 (Fax)

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