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Policy-induced Migration in Canada: An Empirical Study

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Author Info
Kathleen M. Day () (Department of Economics, University of Ottawa)
Stanley L. Winer () (School of Public Policy & Administration and Department of Economics, Carleton University)

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Abstract

We investigate the influence of public policy on interregional migration in Canada using new interprovincial migration data constructed from personal income tax files for the years 1974 to 1996. We consider the consequences for gross and net migration flows of regional variation in employment insurance, provincial social assistance, personal income taxes and public spending of different types, and we compare the effects of these policies to the impacts on migration of wages, employment prospects and moving costs. We also conduct a preliminary investigation of the migration consequences of certain extraordinary political events in Quebec and of the closing of the cod fishery in Newfoundland. Unemployment insurance is an especially important and well documented source of income for many people, and regional variation in the generosity of the insurance system over the last three decades has been substantial. The results suggest that while increasing the generosity of the system in high unemployment regions may have induced more migration to the Atlantic region than would otherwise have occurred, the resulting changes in gross flows are probably not large and have had, at most, small effects on average provincial unemployment rates. A variety of other interesting results is also provided.

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Publisher Info
Paper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 01-08.

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Length: 49 pages
Date of creation: 25 Nov 2001
Date of revision:
Publication status: Published: Carleton Working Papers
Handle: RePEc:car:carecp:01-08

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Related research
Keywords: migration; regional disparity; public policy; unemployment insurance; conditional logit; taxation data;

Find related papers by JEL classification:
H0 - Public Economics - - General
H7 - Public Economics - - State and Local Government; Intergovernmental Relations
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Lin, Zhengxi, 1998. "Employment Insurance in Canada: Recent Trends and Policy Changes," Analytical Studies Branch Research Paper Series 1998125e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. Winer, Stanley L, 1983. "Some Evidence on the Effect of the Separation of Spending and Taxing Decisions," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 126-40, February. [Downloadable!] (restricted)
  4. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-44, February. [Downloadable!] (restricted)
  5. William G. Watson, 1986. "An Estimate of the Welfare Gain from Fiscal Equalization," Canadian Journal of Economics, Canadian Economics Association, vol. 19(2), pages 298-308, May. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Böckerman, Petri & Hämäläinen, Kari, 2002. "Housing, dynamics of regional labour markets and migration," ERSA conference papers ersa02p159, European Regional Science Association. [Downloadable!]
  2. Michael Benarroch & Hugh Grant, 2004. "The interprovincial migration of Canadian physicians: does income matter?," Applied Economics, Taylor and Francis Journals, vol. 36(20), pages 2335-2345, November. [Downloadable!] (restricted)
  3. Benoit Tarroux, 2006. "Are Equalization Payments Making Canadians Better Off? A Two-Dimensional Dominance Answer," IDEP Working Papers 0608, Institut d'economie publique (IDEP), Marseille, France, revised 15 Nov 2006. [Downloadable!]
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