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Welfare policies and migration of the poor in the United States: An empirical note

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  • Richard Cebula
  • James Koch

Abstract

This paper has investigated the impact of geographic welfare benefit differentials upon migration in the United States. Unlike other related studies, which typically focus upon black migration (as a surrogate measure of migration of the poor), the present study focuses directly upon migration of the poor per se. A variety of reduced-form estimates are provided. The evidence strongly suggests that the net in-migration of the poor is positively and significantly influenced by higher nominal AFDC levels and by higher real AFDC levels. These findings support the ‘welfare magnet hypothesis,’ which alleges that relatively high welfare levels act to attract poor migrants. Moreover, given that poor migrants are attracted non only by high nominal welfare levels but also by high real welfare levels, an argument can be made for establishing geographically uniform real welfare benefit levels in the United States. This uniformity presumably should act, over the long run, to eliminate the human resource distortions being caused by the currently prevailing welfare system. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • Richard Cebula & James Koch, 1989. "Welfare policies and migration of the poor in the United States: An empirical note," Public Choice, Springer, vol. 61(2), pages 171-176, May.
    • Handle: RePEc:kap:pubcho:v:61:y:1989:i:2:p:171-176
    DOI: 10.1007/BF00115663
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    References listed on IDEAS

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    1. Lowell E. Gallaway & Richard J. Cebula, 1973. "Differentials and Indeterminacy in Wage Rate Analysis: An Empirical Note," ILR Review, Cornell University, ILR School, vol. 26(3), pages 991-995, April.
    2. Rishi Kumar, 1977. "More on nonwhite migration, welfare levels, and the political process," Public Choice, Springer, vol. 32(1), pages 151-154, December.
    3. Greenwood, Michael J, 1969. "An Analysis of the Determinants of Geographic Labor Mobility in the United States," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 189-194, May.
    4. Richard J. Cebula, 1978. "An Empirical Note on the Tiebout-Tullock Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(4), pages 705-711.
    5. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
    6. Richard Cebula, 1977. "Nonwhite migration, welfare, and politics—A reply," Public Choice, Springer, vol. 32(1), pages 155-156, December.
    7. Cebula, Richard, 1978. "The Determinants of Human Migration," MPRA Paper 58401, University Library of Munich, Germany.
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    Cited by:

    1. Brian Cushing, 2005. "The Role of Welfare and Space in the Migration of the Poor," Working Papers Working Paper 2005-08, Regional Research Institute, West Virginia University.
    2. Brian J. Cushing, 1993. "The Effect of the Social Welfare System on Metropolitan Migration in the US, by Income Group, Gender and Family Structure," Urban Studies, Urban Studies Journal Limited, vol. 30(2), pages 325-337, March.
    3. Lars P. Feld, 2000. "Fiskalischer Wettbewerb und Einkommensumverteilung," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(2), pages 181-198, May.
    4. repec:rri:wpaper:200508 is not listed on IDEAS
    5. Keith Dowding & Peter John & Stephen Biggs, 1994. "Tiebout : A Survey of the Empirical Literature," Urban Studies, Urban Studies Journal Limited, vol. 31(4-5), pages 767-797, May.

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