THE ECONOMIC-EFFECTS OF UNEMPLOYMENT-INSURANCE IN CANADA - AN EMPIRICAL-ANALYSIS OF UI DISENTITLEMENT

This article provides an overview of the Canadian Unemployment Insuran ce (UI) program, including its evolution, salient features, relative s ize, and knowledge about its labor market impacts. Understanding of th ese impacts is limited, and we conclude that an ''event-study'' approa ch is a promising way to further this knowledge. We examine the effect s of the 1976 UI disentitlement of the elderly on their labor force be havior and find evidence of significant adverse selection effects. Int eractions with the public pension system suggest that poverty among th e elderly could be best addressed through changes in programs other th an UI.