Unemployment Compensation Programs Effect on the Employment of Young Men: A Cross-National Comparison of Canadian, British and American Unemployment Policies

This study compares the receipt rates of unemployment compensation of American young men (aged 18-25) with those from Canada and the United Kingdom. The results indicate that American young men are far less likely to receive compensation for their unemployment than are youth from the other two nations. Pooling the data from all three nations together we find that receipt of unemployment insurance in the prior year is complementary to current work participation whereas unemployment assistance benefits act as a work disincentive. This analysis indicates that the most effective policy alternatives are to increase the length of time that young men can accept insurance benefits and/or to raise the amount of income recipients can retain before the reduction of insurance benefits.