Geographically varying unemployment insurance (UI) generosity may distort where unemployed workers search. We exploit an Italian reform that equalized potential benefit duration (PBD) across regions by cutting it in the South. Using a difference-in-differences design, we find that shorter PBD reduces days on benefits and of non-employment. It also increases internal migration: a 12-month PBD reduction for workers dismissed in the South makes them 5.5 percentage points more likely to be reemployed in the higher-employment Center-North. The migration response is concentrated among high-ability workers and when destination labor demand is strong. Place-based generosity may lock workers into weaker labor markets.