The effects of unemployment benefits on migration in lagging regions
AbstractIn this paper we analyze the unintended effects on mobility of a national place-based policy (SIPTEA) that provides greater unemployment protection in two lagging regions of southern Spain (namely, Extremadura and Andalucía). Using a border identification strategy and (1981 and 1991) census data at the municipal level, we estimate the effects of SIPTEA on population growth, the probability of staying and in-migration in rural areas that are experiencing high unemployment and significant out-migration flows. The results indicate that the policy mitigated population losses by increasing both the probability of staying and in-migration, although the locational inefficiencies implied are not particularly large. We also explore the effects of greater unemployment protection on labor market outcomes. Here, the results indicate that the policy led to a 10- to 13-percentage point increase in unemployment.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2013/10.
Length: 41 pages
Date of creation: 2013
Date of revision:
Unemployment protection; migration; mobility; place-based policy; lagging regions;
Find related papers by JEL classification:
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-20 (All new papers)
- NEP-EUR-2013-04-20 (Microeconomic European Issues)
- NEP-MIG-2013-04-20 (Economics of Human Migration)
- NEP-URE-2013-04-20 (Urban & Real Estate Economics)
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.:
- De Giorgi, Giacomo & Pellizzari, Michele, 2009. "Welfare migration in Europe," Labour Economics, Elsevier, vol. 16(4), pages 353-363, August.
- Goerlich Gisbert Francisco J. & Cantarino Martí Isidro, 2010. "Rugosidad del terreno: una característica del paisaje poco estudiada," Working Papers 201010, Fundacion BBVA / BBVA Foundation.
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