Out with the old, in with the old: A closer look at younger versus older elderly migration

Objective. This research examines the migration behavior of the elderly, recognizing that the older and younger elderly may make different decisions and have different consequences for the states in which they live. Methods. Using U.S. Census migration flow data, we describe the movements of the younger and older elderly. Our econometric analysis brings together the wisdom of elderly migration research that focuses on motives (amenity vs. return/assistance) and the Tiebout-related research that considers the effects of policy. Results. We find that all elderly age groups avoid moving to states with high estate/inheritance/gift taxes, although the effect weakens with age. Likewise, the younger elderly appear to be "shopping around" for destinations with a temperate climate and favorable government policies regarding income taxes and welfare spending, whereas the older elderly are more likely to be "driven out" of their origin state by a high cost of living and income and property taxes. Conclusions. Our findings suggest that both the patterns of migration and the factors that affect migration decisions differ between the younger and older elderly.