Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2001:12: Migration and Local Public Services

Matz Dahlberg () and Peter Fredriksson ()
Additional contact information
Matz Dahlberg: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Peter Fredriksson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

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

JEL-codes: D12; H31; H73; R23

27 pages, April 15, 2001

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