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Means-Tested Programs and Interstate Migration in the United States

Author

Listed:
  • Alvaro Janez

    (Universidad Carlos III de Madrid)

Abstract

This paper quantifies the impact of means-tested programs – in particular, Medicaid and Public Housing – on the interstate mobility of their beneficiaries. Simulations from a structural model with heterogeneous workers and locations show that beneficiaries' mobility falls by 17.2 percent, with the greatest reduction occurring among the poorest beneficiaries. Around half of this effect stems from the lack of federal coordination in the programs' administrations, namely, the possibility that a moving beneficiary loses transfers despite being eligible for them. A policy that eliminates this risk raises overall welfare, with 5 percent of low-income households enjoying a welfare gain of 1.1 percent. (Copyright: Elsevier)

Suggested Citation

  • Alvaro Janez, 2025. "Means-Tested Programs and Interstate Migration in the United States," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 55, January.
    • Handle: RePEc:red:issued:22-226
    DOI: 10.1016/j.red.2024.101256
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    More about this item

    Keywords

    Means-tested programs; Interstate migration; Heterogeneity;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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