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.