The welfare state and its consequences: The case of unemployment insurance

Michael R. Smith, James McGill Professor of Sociology. Over a long period, particularly since WWII, rich countries have equipped themselves with a set of protections (the welfare state) to reduce the likelihood people will experience catastrophic income loss. While the welfare state itself is not a matter of debate, the design of its institutions is. There's been particular interest in the (un)employment insurance program. Until the early '80s Canadian and US unemployment rates were generally close. Since then, Canadian rates have persistently exceeded US rates. The extent to which this gap can be attributed to program design differences has been the subject of considerable debate, which this talk will review. Also, potential program design effects will be explored using comparative data from Canada and Australia, two countries with very different unemployment compensation program designs.