This paper explores the relationship between province of residence and the use of unemployment insurance (UI) among immigrants who landed in Canada during the period 1981-88. Use of a new data set, the Longitudinal Immigration Data Base, overcomes the restriction that other data sets are cross-sectional only in nature or do not identify birthplace. Our principal conclusion is that more generous UI benefits and poorer economic conditions than the Canadian average have a positive impact on the fraction of immigrants who receive UI. In addition, the province of residence has a separate effect on the likelihood of claiming UI, perhaps due to mobility costs. Because national immigration policies have a differential impact across provinces, it is understandable that provincial policy makers wish to have greater influence over federal immigration policies."This paper explores the relationship between province of residence and the use of unemployment insurance (UI) among immigrants who landed in Canada during the period 1981-88. Use of a new data set, the Longitudinal Immigration Data Base, overcomes the restriction that other data sets are cross-sectional only in nature or do not identify birthplace. Our principal conclusion is that more generous UI benefits and poorer economic conditions than the Canadian average have a positive impact on the fraction of immigrants who receive UI. In addition, the province of residence has a separate effect on the likelihood of claiming UI, perhaps due to mobility costs. Because national immigration policies have a differential impact across provinces, it is understandable that provincial policymakers wish to have greater influence over federal immigration policies." (EXCERPT)

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insurance system unemployment insurance Canada immigrant population