Keywords
Canadian labor market, young and old workers, search theoretical model
Abstract
This paper studies the labor market behavior differences across different age groups in Canada. I use data from 2000 to 2024, which includes the Great Recession and the Covid-19 recession, to conduct analysis. The data show that compared to the older workers, young workers not only have a much higher unemployment rate, but also a higher job finding rate and job separation rate. The volatilities in the unemployment and separation rates for the young workers are also much higher than those for the older workers. I then use a labor search model to study the differences. I calibrate the model to the Canadian data and simulate the model assuming the economy is subject to a productivity shock. I find that there are significant labor market differences between young workers and older workers: In particular, the response in the unemployment rate of the young workers to the shock is much more pronounced compared to the older age groups. I also find that the labor market differences between young and old workers are mainly caused by the differences in the job finding rate.
Primary Advisor
Yahong Zhang
Program Reader
Nurlan Turdaliev
Degree Name
Master of Arts
Department
Economics
Document Type
Major Research Paper
Convocation Year
2024