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

Author

Listed:
  • 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.

Suggested Citation

  • Kathleen M. Day & Stanley L. Winer, 2011. "What do we Know about the Relationship between Regionalized Aspects of the Unemployment Insurance System and Internal Migration in Canada?," CESifo Working Paper Series 3479, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3479
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3479.pdf
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    References listed on IDEAS

    as
    1. Krueger, Alan B. & Mueller, Andreas, 2010. "Job search and unemployment insurance: New evidence from time use data," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 298-307, April.
    2. 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, vol. 27(1), pages 58-80, February.
    3. 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.
    4. Coulombe, S. & Tremblay, J.-F., 1999. "Human Capital and Regional Convergence in Canada," Working Papers 9906e, University of Ottawa, Department of Economics.
    5. Hou, Feng & Ostrovsky, Yuri & Picot, Garnett, 2008. "Internal Migration of Immigrants: Do Immigrants Respond to Regional Labour Demand Shocks?," Analytical Studies Branch Research Paper Series 2008318e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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