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Related Experiment Videos

Voluntary income redistribution with migration.

R Crane

    Journal of Urban Economics
    |January 1, 1992
    PubMed
    Summary

    Disparities in state transfer policies may cause migration, impacting resource redistribution. The study analyzes how migration costs and general equilibrium effects influence the value of these transfers.

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    Area of Science:

    • Economics
    • Public Policy
    • Sociology

    Background:

    • The welfare magnet problem describes how differing state transfer policies can incentivize recipient migration.
    • This migration potentially erodes the resource base and affects local economies.

    Purpose of the Study:

    • To clarify the economic debate surrounding the welfare magnet problem.
    • To analyze the factors determining the value of redistributing local resources.

    Main Methods:

    • The study employs economic modeling to assess the impact of transfer policies.
    • It considers general equilibrium effects on local prices and resource bases.

    Main Results:

    • The value of resource redistribution is contingent on income values for different groups.
    Keywords:
    AmericasDemographic FactorsDeveloped CountriesEconomic FactorsIncomeIncome DistributionMigrationMigration, InternalNorth AmericaNorthern AmericaPolicyPopulationPopulation DynamicsSocial PolicySocial WelfareSocioeconomic FactorsUnited States

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  • Migration costs, including resource base erosion, significantly impact redistribution effectiveness.

    • Conclusions:

    • State transfer policies must account for migration costs and general equilibrium effects.
    • Effective redistribution requires balancing income benefits against the economic consequences of migration.