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Geographic Labour Mobility and Unemployment Insurance in Europe

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  • Tatsiramos, Konstantinos

    (University of Luxembourg)

Abstract

Conventional wisdom suggests that unemployment benefits create a stronger geographic attachment by lowering the willingness of the unemployed to accept job offers. We assess empirically the effect of benefits on geographic labour mobility using individual data from the European Community Household Panel for France, Germany, Spain, and the UK. Contrary to the conventional wisdom, we find that receiving benefits enhances mobility offsetting the negative effect of benefits on the incentives to move. We estimate binary choice panel data models controlling for unobserved heterogeneity using random and fixed effects. The results are invariant to the estimated model.

Suggested Citation

  • Tatsiramos, Konstantinos, 2004. "Geographic Labour Mobility and Unemployment Insurance in Europe," IZA Discussion Papers 1253, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1253
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    More about this item

    Keywords

    discrete choice panel data; unemployment insurance; geographic labour mobility;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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