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Policy-induced internal migration: An empirical investigation of the Canadian case

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  • Kathleen Day

    ()

  • Stanley Winer

    ()

Abstract

We investigate the influence of public policy on interprovincial migration in Canada using new aggregated migration data for 1974–1996, the longest period studied so far. We consider the consequences of regional variation in a variety of policies, and also investigate the effects of certain extraordinary events in Quebec and in the Atlantic provinces. The results indicate that while the changing bias in the unemployment insurance system may have induced some people to move to the relatively high unemployment Atlantic region, the resulting flows are likely too small to have altered regional unemployment rates. In contrast, political events in Quebec in the 1970's and the closing of the cod fishery in 1992 appear to be associated with large changes in migration patterns. Copyright Springer Science + Business Media, LLC 2006

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Bibliographic Info

Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 13 (2006)
Issue (Month): 5 (September)
Pages: 535-564

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Handle: RePEc:kap:itaxpf:v:13:y:2006:i:5:p:535-564

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Web page: http://www.springerlink.com/link.asp?id=102915

Related research

Keywords: Migration; Regional disparity; Public Policy; Unemployment Insurance; Conditional logit; Taxation data;

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References

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  1. Kira Boerner & Silke Uebelmesser, 2007. "Migration and the welfare state: The economic power of the non-voter?," International Tax and Public Finance, Springer, vol. 14(1), pages 93-111, February.
  2. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
  3. Phipps, Shelley, 1990. "Quantity-Constrainted Household Responses to UI Reform," Economic Journal, Royal Economic Society, vol. 100(399), pages 124-40, March.
  4. Lin, Zhengxi, 1998. "Employment Insurance in Canada: Recent Trends and Policy Changes," Analytical Studies Branch Research Paper Series 1998125e, Statistics Canada, Analytical Studies Branch.
  5. Kirchgassner, Gebhard & Pommerehne, Werner W., 1996. "Tax harmonization and tax competition in the European Union: Lessons from Switzerland," Journal of Public Economics, Elsevier, vol. 60(3), pages 351-371, June.
  6. Shaw, R Paul, 1986. "Fiscal versus Traditional Market Variables in Canadian Migration," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 648-66, June.
  7. Edward L. Glaeser, 2005. "The Curley Effect: The Economics of Shaping the Electorate," Journal of Law, Economics and Organization, Oxford University Press, vol. 21(1), pages 1-19, April.
  8. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
  9. Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-33, November.
  10. Thomas J. Courchene, 1970. "Interprovincial Migration and Economic Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 3(4), pages 550-76, November.
  11. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-44, February.
  12. Finnie, Ross, 2000. "Who Moves? A Panel Logit Model Analysis of Inter-provincial Migration in Canada," Analytical Studies Branch Research Paper Series 2000142e, Statistics Canada, Analytical Studies Branch.
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Citations

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Cited by:
  1. Boadway, Robin & Tremblay, Jean-François, 2012. "Reassessment of the Tiebout model," Journal of Public Economics, Elsevier, vol. 96(11), pages 1063-1078.
  2. Börner, Kira & Uebelmesser, Silke, 2005. "Migration and the Welfare State: The Economic Power of the Non-Voter?," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 154, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  3. Jakobsson, Niklas & Nordblom, Katarina, 2009. "Intergovernmental grants and fiscal competition," Working Papers in Economics 338, University of Gothenburg, Department of Economics.
  4. Tino Sanandaji, 2014. "The international mobility of billionaires," Small Business Economics, Springer, vol. 42(2), pages 329-338, February.
  5. Koessler, Frédéric & Forges, Françoise, 2008. "Long persuasion games," Economics Papers from University Paris Dauphine 123456789/179, Paris Dauphine University.
  6. Sanandaji, Tino, 2012. "The International Mobility of the Super-Rich," Working Paper Series 904, Research Institute of Industrial Economics.
  7. Grady, Patrick & Macmillan, Kathleen, 2007. "Interprovincial Barriers to Labour Mobility in Canada:Policy, Knowledge Gaps and Research Issues," MPRA Paper 2988, University Library of Munich, Germany.
  8. Laurence Kotlikoff & Bernd Raffelhueschen, 1991. "How Regional Differences in Taxes and Public Goods Distort Life Cycle Location Choices," NBER Working Papers 3598, National Bureau of Economic Research, Inc.
  9. Basher, Syed A. & Fachin, Stefano, 2008. "The long-term decline of internal migration in Canada – Ontario as a case study," MPRA Paper 6685, University Library of Munich, Germany.
  10. Hunt, Gary L. & Mueller, Richard E., 2010. "Returns to Skill, Tax Policy, and North American Migration by Skill Level: Canada and the United States 1995 - 2001," CLSSRN working papers clsrn_admin-2010-11, Vancouver School of Economics, revised 26 Mar 2010.

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