E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital

• Dynamic Employment and Hours Effects of Government Spending Shocks

  Staff Working Paper 1999-1 Mingwei Yuan, Wenli Li

  In this paper, we analyze the dynamic behaviour of employment and hours worked per worker in a stochastic general equilibrium model with a matching mechanism between vacancies and unemployed workers. The model is estimated for the United States using the Generalized Methods of Moments (GMM) estimation technique. An increase in government spending raises hours worked […]

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Labour markets JEL Code(s): E, E2, E24, E3, E32, E6, E62, J, J6, J64

• Les marchés du travail régionaux : une comparaison entre le Canada et les États-Unis

  Staff Working Paper 1997-17 Mario Lefebvre

  The purpose of this study is to compare the behaviour of regional labour markets in Canada and the United States. The study shows that the degree of persistence of unemployment is significantly higher in the provinces of Canada than it is in the various American regions.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E24

• What Does Downward Nominal-Wage Rigidity Imply for Monetary Policy?

  Staff Working Paper 1997-13 Seamus Hogan

  A recent paper has suggested there might be a trade-off between inflation and unemployment at low inflation rates and this has led some economists to recommend that Canada increase its inflation rate.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation targets, Monetary policy framework, Monetary policy transmission JEL Code(s): C, C5, C52, E, E2, E24, E5, E50

• A Micro Approach to the Issue of Hysteresis in Unemployment: Evidence from the 1988­1990 Labour Market Activity Survey

  Staff Working Paper 1997-12 Gordon Wilkinson

  This paper uses a rich set of microeconomic labour market data—the 1988­90 Labour Market Activity Survey published by Statistics Canada—to test whether there is negative duration dependence in unemployment spells. It updates and extends similar work carried out by Jones (1995) who used the 1986­87 Labour Market Activity Survey.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): E, E2, E24

• An Econometric Examination of the Trend Unemployment Rate in Canada

  Staff Working Paper 1996-7 Denise Côté, Doug Hostland

  This paper attempts to identify the trend unemployment rate, an empirical concept, using cointegration theory. The authors examine whether there is a cointegrating relationship between the observed unemployment rate and various structural factors, focussing neither on the non-accelerating-inflation rate of unemployment (NAIRU) nor on the natural rate of unemployment, but rather on the trend unemployment rate, which they define in terms of cointegration.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): E, E2, E24

• Wage and Price Dynamics in Canada

  Technical Report No. 56 Barry Cozier

  This paper examines wage and price dynamics in Canada with a view towards testing the implications of a wage-price dynamics, according to which unit labour costs are determined by a wage Phillips curve while prices are set as a markup over unit labour costs. This model is compared to an alternative model in which excess […]

  Content Type(s): Staff research, Technical reports Topic(s): Inflation and prices JEL Code(s): C, C5, C51, C52, E, E2, E24, E3, E31

• Some Evidence on Hysteresis and the Costs of Disinflation in Canada

  Technical Report No. 55 Barry Cozier, Gordon Wilkinson

  This paper addresses the following questions: How large are the output costs of disinflation in Canada? Are these costs temporary, as predicted by natural-rate models, or are they permanent, as predicted by hysteresis models? Are the costs of disinflation higher at lower rates of inflation? Are they higher when the economy is at or below […]

  Content Type(s): Staff research, Technical reports Topic(s): Labour markets JEL Code(s): E, E2, E24, E3, E31

• Regional Disparities in Wage and Unemployment Rates in Canada: A Review of Some Issues

  Technical Report No. 51 Kathleen Day

  In this report the author considers three issues relating to regional disparities in Canada. First, the size of regional disparities in unemployment and wage rates is examined together with the patterns in these disparities over time. Next, various theories related to the causes of regional disparities are reviewed, focussing on their predictions regarding regional disparities […]

  Content Type(s): Staff research, Technical reports Topic(s): Labour markets, Regional economic developments JEL Code(s): E, E2, E24

• The NAIRU in Canada: Concepts, Determinants and Estimates

  Technical Report No. 50 David Rose

  An important question that faces macroeconomic policy makers is whether the economy can absorb increases in aggregate demand without generating inflationary pressures. Many economists have found it useful to approach this issue by asking whether the economy is operating at a rate of unemployment consistent with inflation neither accelerating nor decelerating, all else being equal. […]

  Content Type(s): Staff research, Technical reports Topic(s): Labour markets JEL Code(s): E, E2, E24