Scandinavian Working Papers in Economics
Working Papers,
Copenhagen Business School, Department of Economics
No 12-2024: The Domino Effect: Exploring Residential Mobility in the Aftermath of Municipal Mergers
Bence János Bøje-Kovács (), Ismir Mulalic () and Marie Louise Schultz-Nielsen ()
Additional contact information
Bence János Bøje-Kovács: Aalborg University, Department of the Built Environment
Ismir Mulalic: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Marie Louise Schultz-Nielsen: ROCKWOOL Foundation Research, Postal: Ny Kongensgade 6, DK-1472 Copenhagen, Denmark
Abstract: In this paper, we investigate the impact of municipal mergers on residential mobility in a quasi-natural experiment setting by examining how local economic environment and neighborhood composition respond to the loss of local public administration. Utilizing comprehensive neighborhood-level data from Denmark spanning 1996 to 2015, we find that the loss of the town-hall triggers emigration, leading to a re-duction in locally supplied public goods. This affects the local housing market and job availability, leading to lower housing prices, higher wages, and longer com-mutes. Ultimately, the loss of the town-hall bears major negative consequences for inhabitants.
Keywords: Municipal amalgamation; Regional migration; Neighborhood characteristics; Local labor markets
Language: English
39 pages, August 4, 2024
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