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Author:Phipps, S.
Title:Equity and efficiency consequences of unemployment insurance reform in Canada: The importance of sensitivity analysis
Journal:Economica
1991 : MAY, VOL. 58:230, p. 199-214
Index terms:UNEMPLOYMENT
INSURANCE
CANADA
SENSITIVITY ANALYSIS
LABOUR SUPPLY
WELFARE
DEMAND
MODELS
Language:eng
Abstract:The equity and efficiency consequences of proposals for the reform of the Canadian Unemployment Insurance programme are evaluated. To assess the effect of the proposals on the distribution of household welfare, two models of labour supply are considered. The first assumes that all observed unemployment is the result of utility-maximizing choices; the second assumes that some part of observed unemployment may be the result of demand-size constraints. Alternative measures for evaluating welfare are developed. The first is in the spirit of utilitarism; the second in the spirit of Rawl's "theory of justice"; the third in the spirit of Nozick's "entitlement theory". The outcome of each evaluating method is discussed.
SCIMA record nr: 93077
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