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Ms. Elva Bova, João Tovar Jalles, and Ms. Christina Kolerus

active labor market programs has a positive impact on reducing frictions in particular when these are aimed at providing incentives for start-up and promoting job sharing programs. Interactions . Our results show that during the 2008 global shock the negative impact of unemployment benefits on frictional unemployment was stronger, while the role of long-term unemployment was smaller as was the impact of low and intermediate levels of education. There was no significant change in the impact of the determinants identified above, including testing for complementarities

Ms. Elva Bova, João Tovar Jalles, and Ms. Christina Kolerus
This paper explores conditions and policies that could affect the matching between labor demand and supply. We identify shifts in the Beveridge curves for 12 OECD countries between 2000Q1 and 2013Q4 using three complementary methodologies and analyze the short-run determinants of these shifts by means of limited-dependent variable models. We find that labor force growth as well as employment protection legislation reduce the likelihood of an outward shift in the Beveridge curve,. Our findings also show that the matching process is more difficult the higher the share of employees with intermediate levels of education in the labor force and when long-term unemployment is more pronounced. Policies which could facilitate labor market matching include active labor market policies, such as incentives for start-up and job sharing programs. Passive labor market policies, such as unemployment benefits, as well as labor taxation render matching signficantly more difficult.
Ms. Elva Bova, João Tovar Jalles, and Ms. Christina Kolerus
Mr. Eswar S Prasad
This paper examines recent developments in the Canadian labor market. Using disaggregated labor market data, various hypotheses concerning the slow employment growth and rise in unemployment since 1990 are evaluated. The analysis indicates that a large part of the recent rise in the unemployment rate may reflect an increase in the structural rather than the cyclical component of unemployment. Various sources of labor market rigidities that may have contributed to the increase in structural unemployment are examined. In particular, the role of the unemployment insurance system in contributing to labor market rigidity and measures for reforming this system, including the recent proposals of the government, are discussed. Finally, this paper examines active labor market policies that could help to alleviate structural unemployment.
Mr. Eswar S Prasad

their absorption into employment. Existing programs and proposals for new programs that are targeted to these specific groups are evaluated. Finally, the paper discusses short-term job creation measures such as job sharing and reductions in working hours that have recently been the subject of some debate, especially in Europe. These measures may at best have a small effect on short-term employment growth and are unlikely to affect the structural component of unemployment. II. Recent Labor Market Developments Although the last recession in Canada bottomed out