provinces. We examine monthly data on employment, wages, and hours across 8 industries and 10 provinces over the 1961- 1975 … period. We find that employment actually rose after the introduction of NHI; wages increased as well, while average hours …

therefore the elasticity of labor force participation with respect to benefits generosity. Unfortunately, this parameter has … elasticity of labor force non-participation with respect to DI benefits of 0.25 to 0.32. Despite this large labor supply response …