Abstract: The current unemployment system of China targets urban employees，so when it is applied to migrant workers，there are different reactions to it. According to the Rural-Urban Migration in China（RUMiC），the different effects of participation or non-participation in unemployment insurance and the substitution rate of insurance on urban employees and migrant workers can be tested by the Cox proportional hazards model. Empirical analysis reflects that unemployment insurance has a distinct insured re-employment effect on the part of urban employees，which is significant in the group of higher age and lower education background but becomes less noted as their net asset increases. The unemployment insurance，on the part of migrant workers，has an obvious moral risk effect，which is significant in the group of lower age and higher education background but becomes less noted as their net asset increases.The influence of increasing the unemployment insurance substitute rate on the re-employment of either urban employees or migrant worker shows a tendency of rising first followed by a fall，as the unemployment time increases. The above research is conducive to perfecting the unemployment insurance system of China and helping migrant workers to better integrate into city life.

Key words: unemployment insurance, labor supply, moral risk effect, insured person, re-employment effect, the Cox proportional hazards model