Abstract
This paper examines factors that influence migration of AFDC recipients within California. A county level conditional logit model is used to analyze the impact of cost adjusted benefits on intrastate moves during recipients’ first year of welfare participation. Costs of living, particularly housing costs, differ considerably across counties of California, yet the welfare benefit is set at the state level. This creates the potential for variation in the purchasing power of the welfare benefit if a family chooses to move. Variation in cost of living is shown to have a significant effect on migration patterns of AFDC recipients. Estimates suggest that a $150 decrease in fair market rent results in 15% more migration to the county. Recipients’ migration is more responsive to cost of living than migration of the general population.