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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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    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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