Voting with One's Feet

Unemployment on Indian reservationsaverages close to 45 percent, andwelfarein its various forms is a more significant source of income for reservation inhabitants thanemployment.Given these circumstances and given the very low levels ofhuman capitalpossessed by the American Indian population, there is reason to expect that higher welfare benefit levels would be attractive to Indianmigrants.Based on 1990 Census data, this study empirically finds that, over the 1985–1990 period, American Indians, when making migration decisions, exhibited a strong preference for higher welfare areas. This finding lends support to theTiebouthypothesis of “voting with one's feet” and provides support as well for the establishment of uniform real welfare levels across states.