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What do we Know about the Relationship between Regionalized Aspects of the Unemployment Insurance System and Internal Migration in Canada?

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  • Kathleen M. Day
  • Stanley L. Winer

Abstract

The purpose of this paper is to critically review the past four decades of empirical research on the relationship between internal migration and regional variation in the generosity of Canada’s unemployment insurance system. It has long been argued that because the Canadian insurance system is more generous towards people who live in relatively disadvantaged regions, it retards the out-migration that is part of the market process, thereby slowing economic development and contributing to the persistence of regional inequality in earned incomes. The survey shows, however, that there is no evidence in the empirical literature that regional variation in the generosity of the insurance system has altered internal migration patterns in Canada in a substantial manner.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3479.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3479

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Keywords: regional variation in unemployment insurance generosity; internal migration; interprovincial migration; earned income; comprehensive income differentials; index of insurance generosity; labour market attachment; conditional logit model;

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  1. Lars Osberg & Daniel V. Gordon & Zhengxi Lin, 1994. "Interregional Migration and Interindustry Labour Mobility in Canada: A Simultaneous Approach," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 27(1), pages 58-80, February.
  2. Coulombe, S. & Tremblay, J.-F., 1999. "Human Capital and Regional Convergence in Canada," Working Papers, University of Ottawa, Department of Economics 9906e, University of Ottawa, Department of Economics.
  3. Krueger, Alan B. & Mueller, Andreas, 2010. "Job search and unemployment insurance: New evidence from time use data," Journal of Public Economics, Elsevier, Elsevier, vol. 94(3-4), pages 298-307, April.
  4. 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.
  5. Hou, Feng & Picot, Garnett & Ostrovsky, Yuri, 2008. "Internal Migration of Immigrants: Do Immigrants Respond to Regional Labour Demand Shocks?," Analytical Studies Branch Research Paper Series, Statistics Canada, Analytical Studies Branch 2008318e, Statistics Canada, Analytical Studies Branch.
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