Modifying the state’s tax policy will not keep younger, highly educated Nebraskans from leaving for job opportunities in Iowa, Kansas and other states, panelists said in a March 7 webinar hosted by OpenSky Policy Institute. A number of factors influence those decisions, and investments at the state level in affordable housing and quality schools are attainable steps to stemming the trend of negative net migration.
The discussion of Nebraska losing highly skilled workers comes as the Legislature considers personal and corporate income tax cut bills this session that would largely benefit wealthy Nebraskans and out of state corporations and leave the state vulnerable to large service cuts or tax increases that would harm working families and small businesses should Nebraska run into future fiscal trouble.
Nebraska lost 4,000 more residents with bachelor’s degrees than moved into the state in both 2020 and 2021, an acceleration of a decade-old trend in net migration among the highly educated.
Josie Gatti Schafer of the Center for Public Affairs Research at the University of Nebraska – Omaha said people leave the state for a lot of different reasons, but job opportunities are overwhelmingly cited as the motivation to pack up and move across state lines.
Cristobal Young of Cornell University, in reviewing the decision-making habits of millionaires, found only 15% of the wealthiest Americans moved to another state for what appears to be a tax reason.
Given the small percentage, and the fact that migration is “a young person’s game, and not really about rich people,” Young said that tax policy isn’t an anchor keeping highly skilled workers at home.
Instead, Young said states could take steps to help cities grow their available housing stock as a way to help retain and attract young, highly educated workers.
It’s those future top earners who are the most mobile, and Nebraska would do well to attract more high-wage jobs and support educational systems turning out top talent.