University of Toronto
Institutional Affiliation: University of Toronto
NBER Working Papers and Publications
|November 2018||Long Time Out: Unemployment and Joblessness in Canada and the United States|
with Kory Kroft, Fabian Lange, Matthew J. Notowidigdo: w25236
We compare patterns of unemployment and joblessness between Canada and the U.S. during the Great Recession. Similar to previous findings for the U.S. in Kroft et al. , we document a rise in long-term unemployment in Canada. This increase is not accounted for by changes in the observable composition of the unemployed. We then extend the matching model in Kroft et al.  to exploit the restricted-access panel data from the Canadian Labor Force Survey which contains information on the time since the last job (“joblessness duration”) for both unemployed individuals and non-participants. This allows us to model duration dependence in all labor force flows involving either unemployment or non-participation. To calibrate the extended matching model, we create a new historical vacancy se...