The impact of cost of living differentials on migration of elderly people to Florida

Abstract

Migration patterns of the growing elderly population can have important effects on the economic vitality of regions. In places that receive a disproportionate share of the elderly, such as areas in Florida, Arizona, and California, migration can have magnified effects on the economic base, housing market, infrastructure needs, and social service delivery systems in the region. Local governments typically face the task of anticipating these effects, but are handicapped by a lack of understanding of the migration of elderly people. The determinants of such migration are analyzed with special reference to how cost of living influenced the selection of a destination by migrating elderly persons (55 and over) during 1975-80. The results support the hypothesis that cost of living differentials provide the elderly with an incentive to move that is not unlike the incentive wage differentials provide members of the labor force. The results indicate that cost of living differentials among groups of Florida counties have a major impact on the migration decisions of elderly households. -from Authors