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The Domino Effect: Exploring Residential Mobility in the Aftermath of Municipal Mergers

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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.

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  • Bøje-Kovács, Bence János & Mulalic, Ismir & Schultz-Nielsen, Marie Louise, 2024. "The Domino Effect: Exploring Residential Mobility in the Aftermath of Municipal Mergers," Working Papers 12-2024, Copenhagen Business School, Department of Economics.
    • Handle: RePEc:hhs:cbsnow:2024_012
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    Keywords

    Municipal amalgamation; Regional migration; Neighborhood characteristics; Local labor markets;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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