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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.

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.
    • Handle: RePEc:ces:ceswps:_3479
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3479.pdf
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    References listed on IDEAS

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    1. Macmillan, Kathleen & Grady, Patrick, 2007. "Interprovincial Barriers to Internal Trade in Goods, Services and Flows of Capital: Policy, Knowledge Gaps and Research Issues," MPRA Paper 8709, University Library of Munich, Germany.
    2. 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.
    3. Yuri Ostrovsky & Feng Hou & Garnett Picot, 2011. "Do Immigrants Respond to Regional Labor Demand Shocks?," Growth and Change, Wiley Blackwell, vol. 42(1), pages 23-47, March.
    4. 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.
    5. 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.
    6. Mueller, Andreas, 2010. "On-the-job search and wage dispersion: New evidence from time use data," Economics Letters, Elsevier, vol. 109(2), pages 124-127, November.
    7. Serge Coulombe & Jean‐François Tremblay, 2001. "Human capital and regional convergence in Canada," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 28(3), pages 154-180, June.
    8. Kathleen M. Day, 1992. "Interprovincial Migration and Local Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 25(1), pages 123-144, February.
    9. Thomas J. Courchene, 1970. "Interprovincial Migration and Economic Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 3(4), pages 550-576, November.
    10. Kathleen Day & Stanley Winer, 2006. "Policy-induced internal migration: An empirical investigation of the Canadian case," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(5), pages 535-564, September.
    11. 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 2008318e, Statistics Canada, Analytical Studies Branch.
    12. Ross Finnie, 2004. "Who moves? A logit model analysis of inter-provincial migration in Canada," Applied Economics, Taylor & Francis Journals, vol. 36(16), pages 1759-1779.
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    Cited by:

    1. Montenovo, Laura, 2024. "Do Lower Local Benefits Incentivize Relocations? The Effect of Unemployment Insurance Generosity on Internal Migration," 2024 Annual Meeting, July 28-30, New Orleans, LA 343664, Agricultural and Applied Economics Association.

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    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;
    All these keywords.

    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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