Working Paper Series, Department of Economics, Uppsala University
Migration and Local Public Services
() and Peter Fredriksson
Abstract: Using unique Swedish micro data we examine the impact of
local public services on community choice. The choice of community is
modeled as a choice between a discrete set of alternatives. The US
literature has produced conflicting evidence with respect to the importance
of local public services. We find a robust positive (negative) relationship
between local public services (local income tax rates) and the residential
choices of short-distance migrants (defined as those moving within a local
labor market). However, local public characteristics are less important for
migrants who entered from other local labor markets. Using information on
subsequent mobility, we also investigate whether the last result is due to
lack of information about the characteristics of the local public sector.
The evidence suggests that this is not the case.
Keywords: Migration; Local public services; Tiebout; Discrete choice; repeat migration; (follow links to similar papers)
JEL-Codes: D12; H31; H73; R23; (follow links to similar papers)
27 pages, April 15, 2001
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