Elderly migration: For sun and money

Discussions about elderly migration and its implications for growth planning tend to neglect the role of economic forces. Our view is that cost-of-living variations among states give elderly households on fixed incomes an incentive to move that closely resembles the effects of wage opportunities on workers who migrate. To test this view, we employ a state-by-state index of cost of living for a retired couple to explore its impact on migration choices of the elderly. The effects of cost of living on migration are investigated in terms of the probability that an elderly person will move out-of-state during a five-year period and the probability that a given state will be chosen as destination once a decision has been made to migrate. The influences of cost of living at both origin and destination are strongly confirmed.