Experience-Rating Employment Insurance in Canada


This working paper reviews both the theoretical and empirical literature on experience-rating unemployment insurance programs. In reviewing the existing research, the paper identifies a number of lessons learned to determine whether an experience-rated Employment Insurance (EI) program might, by modifying the behaviour of Canadian firms and workers, address the magnitude of subsidies some firms receive from the program year after year or lessen the extent to which claimants frequently rely on EI benefits.