Geographic Labour Mobility and Unemployment Insurance in Europe

Konstantinos Tatsiramos

No 1253, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: discrete choice panel data; unemployment insurance; geographic labour mobility (search for similar items in EconPapers)
JEL-codes: C23 C25 J61 J65 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2004-08
New Economics Papers: this item is included in nep-dcm, nep-eec and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - substantially revised version published in: Journal of Population Economics, 2009, 22(2), 267-283

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Journal Article: Geographic labour mobility and unemployment insurance in Europe (2009)
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