Cross Provincial Unemployment Rate Research Paper

\section{Provincial Unemployment Rate, Employment Rate and Mobility}
In our research we focus on two economic indicators that may trigger the provincial mobility among individuals. One is provincial unemployment rate and another one is weighted employment growth, which is known as Bartik instrument \citep{bartik1991boon}. From 1993 to 2011, Canadian provinces have experienced large and persistent differences in unemployment and employment rates. To estimate the cross provincial differences we follow \cite{lkhagvasuren2007local}
\footnote{\begin{equation}\label{cvcrossprovincial}
CV_{cross provincial} = \sqrt{\sum_p (u_p/u_c -1)^2}
\end{equation}
where $p$ is for Province, from 1 to 10, $u_c$ denote national unemployment rate and $u_p$ denote provincial unemployment rate. Cross-provincial coefficient of variation explain the provincial variability of employment and unemployment rates in comparison to national level of employment and unemployment rates.}

From 1993 to 2011 the average cross-provincial coefficient of variation for unemployment rate is 34.91\% and employment rate is 7.49\% \footnote{\cite{ureduage}}. To estimate the cross-provincial …show more content…
We find that the cross-provincial coefficient of variation of the unemployment rate increases with age while the coefficient of variation of national unemployment rate shows a hump-shaped pattern over the life-cycle \footnote{The humped shaped curve indicates that provincial variation of unemployment rate has increased for the age group 25 to 44 and then decrease.The age group between 25-44 has the highest variability (21.21\%) in national unemployment rate}. The employment rate variability across provinces (cross provincial CV) is highest for the age group 45-64 (18.80\%) and lowest for the age group 25-44 (10.18\%). However, the variability of national employment rate is