On Voters' Attitudes Towards Unemployment Insurance Subsidies across Regions: A Canadian Simulation

The Canadian unemployment insurance program is designed to reflect the varying risk of joblessness across regions. Regions that are considered low-risk areas subsidize higher risk ones. A region's risk is typically proxied by its relative unemployment rate. We use a dynamic, heterogeneous-agent model calibrated to Canada to analyze voters preferences between a uniformly generous unemployment insurance and the current system with asymmetric generosity. We find that Canada's unusual unemployment insurance system is surprisingly close to what voters would choose in spite of the possibilities of moral hazard and self-insurance through asset build-up.

Cross-Nativity Marriages, Gender, and Human Capital Levels of Children

Because the demographic composition of todays immigrants to the US differs so much from those of natives, immigrants may be less likely to socially integrate into U.S. society, and specically less likely to marry natives. This paper explores the relationship between immigrants' marriage patterns and the academic outcomes of their children. Using 2000 Census data, it is found that while marital decisions of foreign born females do not affect their children's academic success, foreign born males that marry foreign born females are less likely to have children that are high school dropouts. These relationships remain after using various methods to control for the endogeneity of the intermarriage decision. Although we cannot disentangle whether the benefits of same-nativity marriages for foreign born males arise from a more efficient technology in human capital production within the household or from increased participation in ethnic networks, it does appear that immigrant males have better educated children when they marry immigrant females.