Geographic Labour Mobility and Unemployment Insurance in Europe

30 Pages Posted: 13 Aug 2004

See all articles by Konstantinos Tatsiramos

Konstantinos Tatsiramos

University of Luxembourg; Luxembourg Institute of Socio-Economic Research (LISER)

Date Written: August 2004

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: geographic labour mobility, unemployment insurance, discrete choice panel data

JEL Classification: J61, J65, C23, C25

Suggested Citation

Tatsiramos, Konstantinos, Geographic Labour Mobility and Unemployment Insurance in Europe (August 2004). Available at SSRN: https://ssrn.com/abstract=576104 or http://dx.doi.org/10.2139/ssrn.576104

Konstantinos Tatsiramos (Contact Author)

University of Luxembourg ( email )

L-1511 Luxembourg
Luxembourg

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Campus Belval – Maison des Sciences Humaines
Esch-sur-Alzette, L-4366
Luxembourg

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