The impact of place-based policies on perceived regional living conditions across German labor market regions. Examining the impacts on migration flows

Sven Wardenburg () and Thomas Brenner
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Sven Wardenburg: Department of Geography, Philipps University Marburg
Thomas Brenner: Department of Geography, Philipps University Marburg

No 2019-02, Working Papers on Innovation and Space from Philipps University Marburg, Department of Geography

Abstract: The paper analyzes the impact of the two major German regional development and redistribution policies, the municipal fiscal equalization scheme and the economic funds GRW, on perceived regional living conditions, measured through interregional migration between German labor market regions. Using a spatial vector-autoregressive panel model (SpVar), we find evidence that equalization transfers have a significant positive impact on perceived living conditions and contribute to the aim of regional equity. These effects are especially found for regions with low endogenous fiscal capacities. GRW funding reveals no significant effects on net migration rates in total, but short-term effects in rural regions.

Keywords: amenities; fiscal equalization; impulse-response functions; living conditions; migration; policy; SpVar (search for similar items in EconPapers)
JEL-codes: C33 O38 R23 R58 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2019-05
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
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