State and Regional Policy Implications of Elderly Migration

This paper uses the 1980 Census data to estimate the size of the economic transfers associated with the 1985 to 1990 interregional migration of older persons. Total economic transfers are estimated by multiplying interregional migration flows of older persons by the average income of older persons in each migration stream. Assuming an average life expectancy of 15 years for elderly migrants and an expenditure multiplier of 2, the total redistribution of income as a result of 1985 to 1990 elderly migration is estimated to be over $600 billion. The South Atlantic and Mountain regions are the recipients of the largest positive net transfers; the East North Central and West North Central regions have the largest negative net transfers.