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Population Aging, Elderly Migration and Education Spending: Intergenerational Conflict Revisited

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Author Info
Mehmet Serkan Tosun () (University of Nevada, Reno)
Claudia Williamson () (Department of Economics, West Virginia University)
Pavel Yakovlev () (Department of Economics, West Virginia University)

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Abstract

Elderly have been increasingly targeted as a group to enhance economic development and the tax base in communities. A major factor in their rise in importance is the rapid increase in the number of retired elderly through aging of the U.S. population. While recent literature on elderly migration tends to focus on how elderly migration patterns are influenced by state fiscal variables, the reverse effect from elderly population on fiscal variables is very plausible as shown to be the case for estate, inheritance, and gift taxes by Conway and Rork (2006). In this paper, we reexamine the intergenerational conflict in education financing raised by Poterba (1997) using U.S. state and county level data that allows to analyze how preferences for education might vary across different elderly age groups, which has not been explored before. Moreover, this paper uses a variety of advanced econometric techniques to estimate the impact of elderly population and elderly migration on education spending. Our state and county regression results broadly support the presence of intergenerational conflict in education financing. We also find dramatic age heterogeneity in preferences for education spending among elderly migrants.

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File URL: http://www.business.unr.edu/econ/wp/papers/UNRECONWP07003.pdf
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File Function: First version, 2007
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Publisher Info
Paper provided by University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics in its series Working Papers with number 07-003.

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Length: 34 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:unr:wpaper:07-003

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Web page: http://www.business.unr.edu/econ/
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Related research
Keywords: Population aging; elderly migration; education spending; intergenerational conflict;

Other versions of this item:

Find related papers by JEL classification:
H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Health, Education, and Welfare
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  1. Buettner, Thiess, 2001. "Local business taxation and competition for capital: the choice of the tax rate," Regional Science and Urban Economics, Elsevier, vol. 31(2-3), pages 215-245, April. [Downloadable!] (restricted)
    Other versions:
  2. Tosun, Mehmet Serkan, 2003. "Population aging and economic growth: political economy and open economy effects," Economics Letters, Elsevier, vol. 81(3), pages 291-296, December. [Downloadable!] (restricted)
  3. Bearse, Peter & Glomm, Gerhard & Ravikumar, B., 2000. "On the political economy of means-tested education vouchers," European Economic Review, Elsevier, vol. 44(4-6), pages 904-915, May. [Downloadable!] (restricted)
    Other versions:
  4. Sita Slavov, 2006. "Age Bias in Fiscal Policy: Why Does the Political Process Favor the Elderly?," Topics in Theoretical Economics, Berkeley Electronic Press, vol. 6(1), pages 1279-1279. [Downloadable!] (restricted)
    Other versions:
  5. Gradstein, Mark & Kaganovich, Michael, 2004. "Aging population and education finance," Journal of Public Economics, Elsevier, vol. 88(12), pages 2469-2485, December. [Downloadable!] (restricted)
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  6. Karen Smith Conway & Andrew J. Houtenville, 2003. "Out with the Old, In with the Old: A Closer Look at Younger Versus Older Elderly Migration," Social Science Quarterly, The Southwestern Social Science Association, vol. 84(2), pages 309-328. [Downloadable!] (restricted)
  7. Purvi Sevak & Martin Farnham, 2002. "Local Fiscal Policy and Retiree Migration: Evidence from the Health and Retirement Study," Hunter College Department of Economics Working Papers 02/7, Hunter College: Department of Economics. [Downloadable!]
  8. Phillip Swagel & Efraim Sadka & Assaf Razin, 2002. "The Aging of the Population and the Size of the Welfare State," IMF Working Papers 02/68, International Monetary Fund. [Downloadable!]
  9. Holtz-Eakin, Douglas & Lovely, Mary E. & Tosun, Mehmet S., 2004. "Generational conflict, fiscal policy, and economic growth," Journal of Macroeconomics, Elsevier, vol. 26(1), pages 1-23, March. [Downloadable!] (restricted)
  10. Karen Smith Conway & Jonathan C. Rork, 2004. "Diagnosis Murder: The Death of State Death Taxes," Economic Inquiry, Oxford University Press, vol. 42(4), pages 537-559, October. [Downloadable!] (restricted)
  11. Poterba, James M, 1998. "Demographic Change, Intergenerational Linkages, and Public Education," American Economic Review, American Economic Association, vol. 88(2), pages 315-20, May. [Downloadable!] (restricted)
  12. Revelli, Federico, 2001. "Spatial Patterns in Local Taxation: Tax Mimicking or Error Mimicking?," Applied Economics, Taylor and Francis Journals, vol. 33(9), pages 1101-07, July. [Downloadable!] (restricted)
  13. Mehmet S. Tosun, 2005. "Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective," IMF Working Papers 05/140, International Monetary Fund. [Downloadable!]
    Other versions:
  14. Figlio, David N. & Kolpin, Van W. & Reid, William E., 1999. "Do States Play Welfare Games?," Journal of Urban Economics, Elsevier, vol. 46(3), pages 437-454, November. [Downloadable!] (restricted)
  15. Saavedra, Luz Amparo, 2000. "A Model of Welfare Competition with Evidence from AFDC," Journal of Urban Economics, Elsevier, vol. 47(2), pages 248-279, March. [Downloadable!] (restricted)
  16. Baicker, Katherine, 2005. "The spillover effects of state spending," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 529-544, February. [Downloadable!] (restricted)
  17. Conway, Karen Smith & Houtenville, Andrew J, 1998. " Do the Elderly "Vote with Their Feet"?," Public Choice, Springer, vol. 97(4), pages 663-85, December. [Downloadable!] (restricted)
  18. Ladd, Helen F. & Murray, Sheila E., 2001. "Intergenerational conflict reconsidered: county demographic structure and the demand for public education," Economics of Education Review, Elsevier, vol. 20(4), pages 343-357, August. [Downloadable!] (restricted)
  19. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August. [Downloadable!] (restricted)
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  20. Harris, Amy Rehder & Evans, William N. & Schwab, Robert M., 2001. "Education spending in an aging America," Journal of Public Economics, Elsevier, vol. 81(3), pages 449-472, September. [Downloadable!] (restricted)
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