Title

Replacement Income, Duration Of Unemployment And The Migration Of Unemployed Prime Age Males

Title - Alternative

Appl. Econ.

Keywords

Insurance; Economics

Abstract

The relationship between the interstate migration of unemployed males of prime working age (i.e. 25 44 years of age), the level of unemployment replacement income and the duration of unemployment spells is addressed through the use of a relatively untapped data source - the US Census's Survey of Income and Program Participation (SIPP). The rich set of details that are provided in this database allows a more precise empirical analysis of the above relationships than has been possible with PSID, CPS and other previously used databases. By restricting the sample to a relatively homogeneous segment of the work force it is possible to isolate better the effects of unemployment replacement income and job search duration on the migration decision of unemployed workers without the confounding effects of the variety of demographic factors that previous studies have shown to influence labour force migration. The results suggest that for unemployed prime working age males, the probability of migration is negatively related to the level of unemployment replacement income that is received and positively related to the percentage of the total household income that was contributed by the worker prior to becoming unemployed. Furthermore, by using a quadratic specification the duration of an unemployment spell is shown to have a positive affect on the probability of migration up to a certain point and negative thereafter. The latter result is in contrast to the findings of some of the previous research, which suggests an unambigious negative relationship between the duration of unemployment and the probability of migration.

Publication Title

Applied Economics

Volume

25

Issue/Number

7

Publication Date

1-1-1993

Document Type

Article

Language

English

First Page

905

Last Page

909

WOS Identifier

WOS:A1993LL65500005

ISSN

0003-6846

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