Unemployment compensation and labor migration in search equilibrium model

Abstract

The economics of unemployment compensation has attracted considerable attention over the past couple of decades in terms of positive analysis, but less attention has been devoted to labor migration issues in the job search equilibrium. In this study, we developed a rural-urban migration model where the urban labor market was characterized by job search during periods of unemployment. Characteristics of the steady state were analyzed and the unemployment compensation scheme was examined. From this model, we drew an inference of more or less migration occurring to the extent of how unemployment compensation was related to exogenous variables such as discounted gross income, urban rural productivity differentials, entry cost, and the employment tax rate.

The Research of the Causal Relationship Between Unemployment and Emigration in Lithuania

“…Nedarbo lygio ir migracijos problema Lietuvos ir užsie nio autorių šiuolaikiniuose moksliniuose darbuose dažnai nagrinėjama kartu (Stulgienė, Dainorienė 2009;Janušauskas et al 2009;Karalevičiūtė, Matuzevičiūtė 2009;Stanaitis 2011;Feridun 2009;Chiang 2009;Chuhwan 2009;Basile el al. 2012;Chletsos, Raupakias 2012;Boubtane et al 2013).…”