Canada’s current system of fiscal federalism, which results in very large transfers of resources from have provinces to have-not provinces, promotes consumption over investment and hence does not maximize our productivity potential. The author recommends reform of Employment Insurance towards...

This article aims to understand how public policies affect the behavior of agents in term of selectivity. In other words, we explain how the state of the labour market and, in particular qualification level of workers, affects technological choices of firms. Using a matching model in which...