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Employment Spells and Unemployment Insurance Eligibility Requirements

Author

Listed:
  • Michael Baker

    (University of Toronto)

  • Rea Samuel A. Rea

    (University of Toronto)

Abstract
In this paper we examine whether the requirements which workers must satisfy to qualify for UI benefits in any succeeding period of joblessness affect the duration of employment spells. This behavioral consequence of a UI system has been neglected in empirical research, which has instead focused on the effects of UI parameters on the actions of the unemployed. The effect is identified by a unique change in the eligibility requirements of the Canadian UI system in 1990, which is orthogonal to changes in the economic environment. We find a significant increase in the employment hazard in the week that an individual satisfies the eligibility requirement in many regions of the country. In the spirit of Feldstein's (1976) study of temporary layoffs, the results provide new evidence of the impact of UI system parameters on the actions of employers and workers.

Suggested Citation

  • Michael Baker & Rea Samuel A. Rea, 1995. "Employment Spells and Unemployment Insurance Eligibility Requirements," Labor and Demography 9505001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:9505001
    Note: PS 42 pp JEL Classification: J2
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    References listed on IDEAS

    as
    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
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