UNEMPLOYMENT-INSURANCE AND JOB DURATION IN CANADA

We use data from the Canadian 2-year longitudinal Labour Market Activi ty Survey of 1986-87 to estimate the effect of the Unemployment Insura nce (UI) system on job duration. Particular attention is focused on th e ''entrance requirements'' of the UI system, which relate eligibility for UI benefits to an individual's recent employment history. The art icle makes operational the UI entrance requirement provisions which ta ke into account variations in the regional unemployment rate. Controll ing for many personal and job characteristics, we find evidence that a significant number of jobs terminate when they have reached the durat ion that would permit a UI claim.