Migration and public policies: a further empirical analysis

Abstract

This study of internal migration at the state level empirically investigates the Tiebout hypothesis (as extended by Tullock) of “voting with one’s feet.” In addition to its adoption of more current data (net migration from July, 2000 through July, 2008) than other related studies to date, the model differs from most previous comparable studies by including a separate cost of living variable and a measure of per capita state income tax burdens. We also test the hypothesis using two alternative specifications: one linear and the other semi-log. Finally, the analysis also provides both OLS and 2SLS estimates. The advantage of this multi-faceted approach is that it permits an assessment of how sensitive the results are to specification changes and to different estimation procedures. After controlling for economic factors and a quality of life/climate variable, migrants (consumer-voters) appear to prefer lower state income tax burdens, lower state plus local property tax burdens, and higher per pupil outlays on primary and secondary public education.