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Migration and Local Public Services

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  • Dahlberg, Matz

    (Department of Economics)

  • Fredriksson, Peter

    (Department of Economics)

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.

Suggested Citation

  • Dahlberg, Matz & Fredriksson, Peter, 2001. "Migration and Local Public Services," Working Paper Series 2001:12, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2001_012
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    References listed on IDEAS

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    Cited by:

    1. Carlsen, Fredrik & Langset, Bjørg & Rattsø, Jørn & Stambøl, Lasse, 2009. "Using survey data to study capitalization of local public services," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 688-695, November.
    2. Thompson, Paul N., 2017. "Effects of fiscal stress labels on municipal government finances, housing prices, and the quality of public services: Evidence from Ohio," Regional Science and Urban Economics, Elsevier, vol. 64(C), pages 98-116.
    3. Nikolaj Malchow-Møller & Michael Svarer, 2003. "Estimation of the multinomial logit model with random effects," Applied Economics Letters, Taylor & Francis Journals, vol. 10(7), pages 389-392.
    4. Matz Dahlberg & Matias Eklöf & Peter Fredriksson & Jordi Jofre-Monseny, 2012. "Estimating Preferences for Local Public Services Using Migration Data," Urban Studies, Urban Studies Journal Limited, vol. 49(2), pages 319-336, February.
    5. Dahlberg, Matz & Eklöf, Matias, 2003. "Relaxing the IIA Assumption in Locational Choice Models: A Comparison Between Conditional Logit, Mixed Logit, and Multinomial Probit Models," Working Paper Series 2003:9, Uppsala University, Department of Economics.
    6. Edmark, Karin, 2007. "Strategic competition in Swedish local spending on childcare, schooling and care for the elderly," Working Paper Series 2007:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Bryanna Duca & Anita Alves Pena, 2023. "Using Restricted-Access ACS Data to Examine Economic and Noneconomic Factors of Interstate Migration By Race and Ethnicity," Working Papers 23-12, Center for Economic Studies, U.S. Census Bureau.
    8. Patrizio Lecca & Peter G. McGregor & J. Kim Swales & Ya Ping Yin, 2014. "Balanced Budget Multipliers For Small Open Regions Within A Federal System: Evidence From The Scottish Variable Rate Of Income Tax," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 402-421, June.
    9. Aslund, Olof, 2005. "Now and forever? Initial and subsequent location choices of immigrants," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 141-165, March.
    10. Patrizio Lecca & Peter McGregor & Kim Swales & Ya Ping Yin, 2010. "Inverted Haavelmo Effects in a General Equilibrium Analysis of the Impact of Implementing the Scottish Variable Rate of Income Tax," Working Papers 1013, University of Strathclyde Business School, Department of Economics.
    11. Hourie, Eitan & Malul, Miki & Bar-El, Raphael, 2015. "The social value of municipal services," Journal of Policy Modeling, Elsevier, vol. 37(2), pages 253-260.

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    More about this item

    Keywords

    Migration; Local public services; Tiebout; Discrete choice; repeat migration;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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