IMPACTS OF GOVERNMENT POLICIES, ECONOMIC-CONDITIONS, AND PAST MIGRATION ON NET MIGRATION IN THE USA - 1992-93

The determinants of net migration rates including government taxes and welfare spending for 48 contiguous states and the District of Columbi a during 1992-93 are examined. The weighted least squares (WLS) method is employed assuming dependent variable heteroscedasticity. Major fin dings indicate that net migration rates vary positively with employmen t growth, hourly earnings, percentage of possible sunshine, and past n et migration, and they are negatively correlated with state and local tax burdens, welfare spending, violent crime, and percentage of popula tion in the age groups of 18-24 and 24-34. Thus, Sir John Hicks's theo ry that migration was mainly caused by net economic advantages is conf irmed. These results may have policy implications in the area of job c reation, tax policy, welfare reform, the allocation of limited budget to different programmes and law enforcement.