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Recent Changes to the Employment Insurance Regime: Encouraging Work On-claim and Off-claim

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  • David M. Gray
Abstract
This paper evaluates some aspects of the 1996 Employment insurance (EI) reform package. One important modification was the small weeks initiative, which was a pilot program designed to encourage more working activity while qualifying for benefits. Another provision that was monitored closely is the "allowableearnings" regulation, which is designed to encourage claimants to accept short-term work while receiving benefits. I evaluate both of these provisions from an economic policy perspective. It is argued that for many frequent users of EI, the incentives regarding work activity are more complicated than is typically realized. The employment patterns of frequent users of EI are sensitive to changes in benefit calculation formulas, which has repercussions for the expansion of eligibility to more workers with non-standard employment patterns. Within the time horizon of a single EI claim, incentives to accept work have been strengthened, but

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  • David M. Gray, 2006. "Recent Changes to the Employment Insurance Regime: Encouraging Work On-claim and Off-claim," Canadian Public Policy, University of Toronto Press, vol. 32(1), pages 99-110, March.
    • Handle: RePEc:cpp:issued:v:32:y:2006:i:1:p:99-110
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    References listed on IDEAS

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    1. McCall, Brian P, 1996. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Econometrica, Econometric Society, vol. 64(3), pages 647-682, May.
    2. Pierre Granier & Xavier Joutard, 1999. "L'activité réduite favorise-t-elle la sortie du chômage ?," Économie et Statistique, Programme National Persée, vol. 321(1), pages 133-148.
    3. David A. Green & Timothy Sargent, 1998. "Unemployment Insurance and Job Durations: Seasonal and Non-Seasonal Jobs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 247-278, May.
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    Cited by:

    1. Stephanie Lluis & Brian McCall, 2017. "Part-Time Work and Crowding-Out Implications of Employment Insurance Pilot Initiatives," Working Papers 1701, University of Waterloo, Department of Economics, revised Jan 2017.
    2. David Gray & Ted McDonald, 2012. "Does the sophistication of use of unemployment insurance evolve with experience?," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 1220-1245, August.

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