What Do We Know About the Relationship Between Regionalized Aspects of the Unemployment Insurance System and Internal Migration in Canada?

49 Pages Posted: 9 Jun 2011

See all articles by Kathleen M. Day

Kathleen M. Day

University of Ottawa - Department of Economics

Stanley L. Winer

Carleton University - School of Public Policy and Administration; Carleton University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: May 31, 2011

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.

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: R230, J610, J680, H770

Suggested Citation

Day, Kathleen M. and Winer, Stanley L., What Do We Know About the Relationship Between Regionalized Aspects of the Unemployment Insurance System and Internal Migration in Canada? (May 31, 2011). CESifo Working Paper Series No. 3479, Available at SSRN: https://ssrn.com/abstract=1859994

Kathleen M. Day

University of Ottawa - Department of Economics ( email )

200 Wilbrod Street
Ottawa, Ontario K1N 6N5
Canada

Stanley L. Winer (Contact Author)

Carleton University - School of Public Policy and Administration ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada
613-520-2600 x2630 (Phone)
613-520-2551 (Fax)

HOME PAGE: http://www.carleton.ca/winer

Carleton University - Department of Economics ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S 5B6
Canada
613-520-2600 ex.2630 (Phone)
613-520-2551 (Fax)

HOME PAGE: http://www.carleton.ca/winer

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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