Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-Employee Data

39 Pages Posted: 5 Aug 2003

See all articles by Miles Corak

Miles Corak

Statistics Canada; University of Ottawa; IZA Institute of Labor Economics

Wen-Hao Chen

OECD; Statistics Canada

Date Written: June 2003

Abstract

Administrative data on the universe of employees, firms, and unemployment insurance (UI) recipients in Canada over an 11 year period are used to examine the operation of UI using the firm as the unit of analysis. Persistent transfers through UI are present at both industry and firm levels, and an analysis using firm fixed effect indicates that an important fraction of variation in them can be attributed to firm effects. Calculations of overall efficiency loss are very sensitive to the degree to which firm level information is used. A full appreciation of how UI interacts with the labour market requires recognition of the characteristics and human resource practices of firms.

Keywords: Unemployment Insurance, Payroll Taxes

JEL Classification: J65, H25

Suggested Citation

Corak, Miles and Chen, Wen-Hao, Firms, Industries, and Unemployment Insurance: An Analysis Using Employer-Employee Data (June 2003). Available at SSRN: https://ssrn.com/abstract=422560 or http://dx.doi.org/10.2139/ssrn.422560

Miles Corak (Contact Author)

Statistics Canada ( email )

Family and Labour Studies
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University of Ottawa

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IZA Institute of Labor Economics

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Wen-Hao Chen

OECD ( email )

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Statistics Canada ( email )

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