Assessing the Potential Impact of an Income Maintenance Program on Migration: Hypotheses and Suggestions for Research.

by Julie DaVanzo

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Some policies, such as relocation assistance grants, are designed to influence migration directly by helping people move to available jobs. Others, such as income maintenance program (IMP), may not be designed to affect migration, but may inadvertently change the costs and benefits of geographic mobility. A family choice model of migration based on the human capital approach is outlined. The basic premise is that a family will invest in migration if the marginal rate of return (determined by the costs and benefits of migration) exceeds the marginal cost of financing the investment. Six hypotheses of IMP effects on migration are discussed; an IMP may facilitate migration financing, reduce its riskiness, lower the labor market return, and decrease interregional discrepancies in welfare benefits. The information and model extensions needed to test these hypotheses are discussed. Longitudinal data on households and individuals are recommended for future empirical analyses. (Prepared for presentation at the Annual Meeting of the Population Association of America in New Orleans, April 26-28, 1973). 14 pp.

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