Using Municipal Residency Requirements to Disguise Public Policy

Brian Duncan
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Brian Duncan: University of Colorado at Denver

Public Finance Review, 2005, vol. 33, issue 1, 84-116

Abstract: Municipal residency requirements require city employees to live within the city limit. Many cities enacted residency requirements attempting to attract middle-class families into the city and to prevent them from leaving. The model developed in this article suggests that a residency requirement can increase a city’s middle-class population but only if it is accompanied by a municipal wage premium. When effective, a residency requirement can also increase the likelihood that a municipal family will enroll its children in private school through a Tiebout sorting effect. Using U.S. census data, the author finds that comprehensive residency requirements are often but not always accompanied by a municipal wage premium. Furthermore, municipal families living in cities with both a residency requirement and a wage premium are significantly more likely to enroll their children in private school.

Keywords: residency requirement; Tiebout hypothesis; school choice; urban land use; regional migration; urban flight (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:sae:pubfin:v:33:y:2005:i:1:p:84-116

DOI: 10.1177/1091142104271038

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