WISTAX Examines Migration Patterns Using 2000 Census:
State Is Losing Retirees
But Gaining Young Families
MADISON - Evidence of both brain drain and retiree flight from Wisconsin is contained in a new study from the Wisconsin Taxpayers Alliance (WISTAX). The report, "Moving In, Moving On: Migration in Wisconsin," also found that adults in their 30’s and 40’s, often with children under 18, were more likely to move to the Badger State than leave. WISTAX, now in its eighth decade, is a nonprofit, nonpartisan organization dedicated to government research and citizen education.
Using unpublished data from the 2000 census, WISTAX found that, over the prior five years, 84,131 young people ages 20 through 29 came to Wisconsin but 102,576 left, for a net loss of 18,445. In other words, approximately 27% of the "twenty-something" population crossed state borders during this period, with a net loss of 2.6%.
Among those ages 55 through 79, 29,911 moved to Wisconsin, but 38,099 left. The net loss was 8,188, or 0.8% of the state’s 1995 population in this 25-year age range.
The Badger State gained a total of 15,493 children ages 5 through 19 during the five years, according to the report. And 17,928 more adults ages 30 through 49 moved here than left. Those figures were 1.3% and 1.1% of the respective populations. For these two age groups—likely parents and their children—the top five states with the largest in-migration overlapped. Illinois and California topped both lists, with New York also appearing. Iowa and Minnesota were among the top five states sending individuals 30 through 54 to the Badger State. What may attract families to the state, WISTAX researchers suggested, were: generally better schools; lower crime rates; and, in many cases, lower living and housing costs.
Minnesota, Colorado, Arizona, Florida and California were the biggest net gainers of young adults (ages 20-29) from Wisconsin. In addition to moving for college, the WISTAX report cites more and higher-paying jobs and major metro areas with both weather and lifestyle appeal as possible reasons for migration to these states. Significant wage gaps exist between Wisconsin and many of these states in computer-related fields, finance, and legal and scientific occupations. Minneapolis, for example, has more "white collar" jobs at higher pay than Milwaukee or Madison. The city also has more cultural, social and professional amenities than Wisconsin’s two large cities.
Among those at or near retirement (55-79), Florida and Arizona were the top two destinations. Weather was likely an important factor for seniors, as they sought to escape cold winters. However, WISTAX researchers note that taxes may also have played a role, particularly for the more "well-to-do." While Florida and Arizona were the preferred destinations, about 50% more retirees went to Florida, a state with no income tax. In fact, the study found that the top nine states gaining the most high-income Wisconsinites all had income and property taxes 25% to 73% lower than Wisconsin’s.
While there were definite age patterns to the migration figures, there were also patterns by income. For individuals in households with incomes under $75,000, net in-migration rates (percentage of the group population) ranged from 0.4% to 0.6%; more people came here than left. However, for those in higher-income households, out-migration was more common and worsened as income climbed. For incomes from $75,000 to $100,000, the net out-migration rate was 0.6%. At $100,000 to $200,000, it was 1.6%, and for incomes $200,000 and higher, the net out-migration rate was 2.3%.
WISTAX researchers also found migration varied by education, occupation and industry. For all education levels less than a bachelor’s degree, net in-migration occurred, i.e., more individuals moved into the state than moved out. However, for those with a bachelor’s degree (-1.8%) or a graduate/professional degree (-1.6%), migration rates were negative; i.e., net out-migration occurred.
When occupations were examined, WISTAX found net out-migration for professional and related (-1.5%), business and finance (-0.8%) and sales (-0.5%).
Individuals with traditional blue-collar jobs such as production (2.3%), transportation (1.8%), and installation and repair (1.3%) were more likely to move to rather than from Wisconsin. This reflects Wisconsin’s status as a manufacturing leader.
When migration patterns were studied by industry, manufacturing (2.0%) and transportation/utilities were among the large gainers. Information (-3.4%); professional, science and management (-2.2%); and finance, insurance and real estate (-1.4%) were the biggest losers of individuals to migration.
Purchase and analysis of Census figures were made possible, in part, by former State Administration Secretary George Kaiser, a founder of Competitive Wisconsin, Inc., with longtime interest in out-migration and its economic impact. UW-Madison La Follette School graduate student Karyn Kriz assisted with early data preparation and analysis.
For a free copy of The Wisconsin Taxpayer titled "Moving In, Moving On: Migration in Wisconsin," write WISTAX, 401 North Lawn Ave., Madison, WI 53704-5033; e-mail wistax@wistax.org; visit www.wistax.org; or phone 608.241.9789.
For More Stories See the Menu At Right
|
