Local Government Policies and Migration: An Analysis for SMSAs in the United States, 1965-1970

This study empirically investigates the impact of AFDC (welfare) policies, per capita property taxation, and per capita local government spending on net in-migration by race to SMSAs for the period 1965-1970. The empirical results imply that black migrants on average are attracted to SMSAs with higher welfare benefits whereas white migrants on average manifest an aversion to higher welfare SMSAs. While higher property taxes exercise little to no effect on black net in-migration, they act to discourage white in-migration. Finally, higher non-welfare expenditures by SMSAs appear to encourage black net in-migration, but they have little to no impact on white in-migration.