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The Role of Welfare and Space in the Migration of the Poor

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  • Brian Cushing

    (Department of Economics, West Virginia University)

Abstract

This study investigates whether interstate differences in welfare benefits affected destination choices of low-income households in the United States during the 1985-90 period. It considers place-to-place migration decisions of poor single-parent females within a conditional logit framework. The research develops an array of variables that add a substantial spatial component to the analysis. The empirical results reconcile conclusions of recent academic literature with the views of state policy officials, but in a somewhat unexpected way. This study finds only modest evidence of a welfare magnet effect, and only for contiguous states. On the other hand, the study strongly confirms the importance of space and connections between places when explaining migration of the poor.

Suggested Citation

  • 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.
    • Handle: RePEc:rri:wpaper:2005wp08
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    File URL: https://researchrepository.wvu.edu/rri_pubs/110/
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    References listed on IDEAS

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    1. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 391-409.
    2. Cushing, Brian J, 1987. "Location-Specific Amenities, Topography, and Population Migration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 21(2), pages 74-85, July.
    3. Dahlberg, Matz & Eklöf, Matias, 2003. "Relaxing the IIA Assumption in Locational Choice Models: A Comparison Between Conditional Logit, Mixed Logit, and Multinomial Probit Models," Working Paper Series 2003:9, Uppsala University, Department of Economics.
    4. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-514, November.
    5. 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.
    6. Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State‐to‐State Migration," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 337-360, May.
    7. Edward M. Gramlich & Deborah S. Laren, 1984. "Migration and Income Redistribution Responsibilities," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 489-511.
    8. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    9. Walter W. McMahon, 1991. "Geographical Cost of Living Differences: An Update," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(3), pages 426-450, September.
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    11. 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.
    12. Jonah B. Gelbach, 2004. "Migration, the Life Cycle, and State Benefits: How Low Is the Bottom?," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1091-1130, October.
    13. 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.
    14. Terra McKinnish, 2005. "Importing the Poor: Welfare Magnetism and Cross-Border Welfare Migration," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    15. Enchautegui, Maria E, 1997. "Welfare Payments and Other Economic Determinants of Female Migration," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 529-554, July.
    16. Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 505-525, January.
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    Cited by:

    1. Mueller, Tom, 2020. "The poverty balancing equation: Expressing poverty of place as a population process," SocArXiv ws3gd, Center for Open Science.

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    More about this item

    Keywords

    welfare; migration; regional; logit;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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