UNEMPLOYMENT-INSURANCE ONCE AGAIN - THE INCIDENCE OF REPEAT PARTICIPATION IN THE CANADIAN UI PROGRAM

This paper describes some of the prevailing Patterns of participation in the Canadian Unemployment Insurance program from a longitudinal perspective, assesses competing interpretations of these patterns, and draws implications for policy. Administrative data that cover roughly the period 1971 to 1989 are used. These data are organized as a panel data set by individual in order to examine the extent and nature of repeat UI use. A great deal of repeat use is documented, and the factors determining the likelihood that an individual will be a repeat UI participant are examined. Seasonal, regional, and industry specific influences are important determinants. It is also found that the young are particularly prone to make repeated use of UI, as are individuals with a history of short employment spells and past UI participation. The findings are open to competing interpretations, but they nonetheless offer some guidance as to how to target 'active' reforms of the UI program. One suggestion is to offer active benefit payments (that is, payments that attempt to reintegrate claimants into a stable pattern of employment) according to the number of claims that the individual has had.