Elderly Migration and State Fiscal Policy : Evidence from the 1990 Census Migration Flows

The elderly's unique economic situation makes some government expenditure and taxation policies more attractive than others and also makes them potentially quite mobile. This research investigates whether elderly migration is affected by state fiscal policies, paying close attention to how the public sector is represented and using net as well as gross state-to-state migration flows. Our empirical results suggest that, in addition to cost-of-living and climate considerations, the elderly are attracted to states that exempt food from sales taxes and spend less on welfare. Low personal income and death taxes also encourage migration, depending on how these taxes are measured