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

Bence Jáanos Bøje-Kovács, Ismir Mulalic, Marie Louise Schultz-Nielsen

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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.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDepartment of Economics. Copenhagen Business School
Number of pages39
Publication statusPublished - Aug 2024
SeriesWorking Paper / Department of Economics. Copenhagen Business School
Number12-2024

Keywords

  • Municipal amalgamation
  • Regional migration
  • Neighborhood characteristics
  • Local labor markets

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