The Impact of Economic Opportunity, Amenities and Fiscal Factors on Age‐specific Migration Rates

Clark, David E.; Hunter, William J.

doi:10.1111/j.1467-9787.1992.tb00191.x

Cited by 196 publications

(178 citation statements)

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“…Findings with respect to amenities are clear. Area measures of population and migration as well as household location decisions are significantly related to climate (Mueser and Graves 1995, Clark and Murphy 1996, Hunt and Mueller 2004, Cheshire and Magrini 2006, Rappaport 2007, Poston et al 2009, Eichman et al 2010), air quality (Seig et al 2004, Bayer et al 2008, recreational opportunities (Duffy-Deno 1998, Lewis et al 2002), cultural amenities (Clark and Hunter 1992), and crime rates (Gottlieb and Joseph 2006). Housing prices and wages are endogenous to area-level migration (Mueser and Graves 1995), and so these variables are typically excluded from analyses with aggregate data.…”

Section: Introductionmentioning

confidence: 99%

Housing prices and inter-urban migration

Plantinga

Détang-Dessendre

Hunt

et al. 2013

Regional Science and Urban Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Understanding the causes and consequences of human migration has long been of interest to urban and regional economists. Empirical studies build on the theoretical results of Roback (1982) and Mueser and Graves (1995) by estimating the effects of wages, housing prices, and amenities on inter-area migration. Findings with respect to amenities are clear (e.g., Rappaport 2007), and household-level studies consistently find that relative wages or incomes increase the probability that a household will select a given location (e.g., Berger and Blomquist 1992). In contrast, the results for housing prices are inconclusive. Studies that include area-level measures (e.g., median housing price for a metropolitan area) find a mix of negative, positive, and insignificant effects on inter-area migration decisions (e.g., Hunt and Mueller 2004). Many migration studies exclude housing price measures. Terms of use: Documents inThe purpose of this paper is to investigate the role of housing prices in influencing inter-urban household migration decisions. An important contribution of the study is the development of a new method for representing housing prices in migration analyses. Following the approach commonly used to model wages in studies of household migration, we identify the form of the utility function for which individual-specific housing prices can be predicted for unselected areas as a function of individual characteristics. Our theoretical results guide the development of an empirical measure of housing costs that accounts for the decision to own or rent and the cost of holding housing capital.We test our housing cost measure using the 2000 PUMS to identify point-to-point migration decisions for a large sample of college-educated males residing in 291 U.S. metropolitan areas. We estimate conditional logit models of metropolitan area choice, controlling for wages, a large range of amenities, and expected housing costs. Our key finding is that our proposed housing cost measure yields the expected results (higher housing prices reduce the probability that an area is selected), which is robust to alternative specifications and samples. We re-estimate our model using three alternative metropolitan area measures of housing costs: median house price, average apartment rent, and average urban land rent. We find that these measures consistently yield counterintuitive results. 3 Housing Prices and Inter-urban Migration

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Section: Introductionmentioning

confidence: 99%

Housing prices and inter-urban migration

Plantinga

Détang-Dessendre

Hunt

et al. 2013

Regional Science and Urban Economics

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“…who moves and where, and who doesn't move. States with higher relative levels of economic freedom attract retirees (Clark & Hunter, 1992), labor force migrants (Ashby, 2007;Cebula, 2014), migrants with higher levels of (Mulholland & Hernandez-Julian, 2013) and income (Shumway & Davis, 2016). However, using state-level data can hide what may be large variations within a state (Stansel, 2013).…”

Section: Federal Statesmentioning

confidence: 99%

Economic Freedom, Migration and Income Change among U.S. Metropolitan Areas

Shumway¹

2018

CUS

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Even though metropolitan area governments have no control over state level monetary, labor, or fiscal policies, they are able to enact policies designed to enhance local living conditions-however determined. Such policies include local taxes, labor and wage policies, and regulations that can differ substantially from other metropolitan areas even within the same state. Collectively such policies create differing levels of economic freedom, as measured by standardized indices. We examine differences in levels of economic freedom across United States metropolitan areas and explore how these differences affect migration patterns and local aggregate and per capita income changes. We find that those metropolitan areas with higher levels of economic freedom tend to experience net in-migration and positive changes in aggregate and per capita income, although the balance between in-state and out-of-state migration confounds these patterns. KeywordsEconomic Freedom, Migration, Income Change, U.S. Metropolitan Regions IntroductionOn January 1, 2016, the billionaire head of Appalossa Management, David Tepper, moved his headquarters and personal residence from New Jersey to Florida.What is interesting about this move is that it was immediately noticed by the New Jersey Office of Legislative Services, which reported that the state will be feeling the impact of this one move on their income-tax forecast (Dopp, 2016). This anecdote suggests that the quality of institutions (e.g. local government polies such as individual and corporate income tax rates) matters in how it affects individuals, businesses, and the ability of local governments to enact and carry-out particular policy decisions. At a global level, there is compelling evidence that good institutions-particularly private property, rule-of-law, freedom of entry and exit into occupations, and freedom to trade-create conditions that foster economic growth and improvements in the quality-of-life (Galor, 2011).Current research provides evidence that countries with lower capital and wage tax rates, fewer barriers of entry into markets, and rule of law, along with political stability and good governance, tend to have higher rates of economic growth, employment and entrepreneurship (Goldsmith, 1995;Ali, 1997;Farr et al., 1998;Ayal & Karras, 1998 Our goal in this paper is to explore how varying levels of government control affect the size and direction of migration and income among metropolitan areas within the United States-a federal state that contains multiple levels of governments. In particular, we investigate the impact of local government policy on revealed locational preferences using Tiebout's (1956) "vote with their feet" J. M. Shumway

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“…(Litwak and Longino, 1987;Clark and Hunter, 1992;Walters, 2002aWalters, , 2002bConway and Houtenville, 2003;Wilmoth, 2010;Lovegreen, Kahana, and Kahana, 2010;Wilmoth, 2010;von Reichert, Cromartie, and Arthur, 2013) This theory projects that as an individual ages, migration decisions will reflect the life cycle changes one is experiencing. Specially, the elderly can be categorized into having three major life cycle changes that would drive different types of migration decisions.…”

Section: Introductionmentioning

confidence: 99%

Senior Migration: Spatial Considerations of Amenity and Health Access Drivers*

Dorfman

Mandich

2015

Journal of Regional Science

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ABSTRACT. This paper extends the literature on amenity migration by focusing on healthcare access for later-life migrants. Previous studies have strongly suggested that natural amenities are strong pull factors for later-life migrants, but high natural amenity counties rarely possess the quality healthcare access optimal for elderly migrants. Utilizing a spatial Bayesian estimation strategy, we explicitly consider numerous drivers of later-life migration to examine the extent to which health access is a driver in location decisions. We find healthcare access measures, including hospital expenditures, hospital beds, and number of doctors, are positively associated with later-life migration decisions.

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The Impact of Economic Opportunity, Amenities and Fiscal Factors on Age‐specific Migration Rates

Cited by 196 publications

References 35 publications

Housing prices and inter-urban migration

Housing prices and inter-urban migration

Economic Freedom, Migration and Income Change among U.S. Metropolitan Areas

Senior Migration: Spatial Considerations of Amenity and Health Access Drivers*

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