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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.