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3.
Unemployed for the whole year, insured. Single APW
There is no gross wage. The maximum benefit period is 45 weeks (varies across the
provinces according to the unemployment level), but 45 weeks is the longest benefit
period. The compensation is 55 per cent of the lost income in 45 weeks, i.e. 45/52 ×
0.55 × 34,412 = 16,379 CAD. There are first 2 weeks (waiting period) with no
compensation, then 45 weeks with compensation from the Employment Insurance
scheme, and in the end 5 weeks with social assistance. Social assistance is 195
CAD/month (rate for the province of Ontario) for a single person (not including
housing coverage), i.e. 225 CAD for 5 weeks. Social assistance (S.A.) is not taxable
(this is the case in all provinces except Quebec). The total compensation is 16,379
CAD from the employment insurance and 225 CAD from S.A., in total 16,604 CAD.
The gross compensation percentage is 16,604 / 34,412 × 100 = 48. The disposable
income of the APW who is unemployed for the whole year is 14,088 CAD in 1997.
The decrease in disposable income compared to the situation with no unemployment
is 25,150 - 14,088 = 11,062 CAD or 44.0 per cent.
4.
Unemployed for 3 months during the year, not eligible for insurance. 
Single APW
The reduction of the gross wage is 8,603 CAD just as in case 2 (3 months of unem-
ployment). It is assumed that the unemployed receives social assistance during the
unemployment period.
The monthly rate for a single person is 195 CAD (cf. also case 3), i.e. 585 CAD in
compensation for three months (housing allowances are not included).
The gross compensation percentage is 585 / 8,603 × 100 = 7. Disposable for an
APW with 3 months of unemployment receiving social assistance is 20,373 CAD.
The decrease in disposable income compared to the situation with no unemployment
is 25,150 - 20,373 = 4,777 CAD or 19.0 per cent.

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