Does Public Pension Funding Affect Where People Move?

by and

SLP#52

The brief’s key findings are:

  • Individuals who move generally go to places with the best mix of amenities, including low tax rates and a robust economy.
  • An open question is whether a state’s unfunded pension liabilities could also affect moving decisions.
  • While movers generally know little about a state’s pension finances, critical news stories could signal poor fiscal management.
  • The analysis finds that, in addition to traditional factors, a state’s pension funding does play a role, albeit small.

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