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

Bence Boje-Kovacs, Ismir Mulalic () and Marie Louise Schultz-Nielsen

No 12-2024, Working Papers from Copenhagen Business School, Department of Economics

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.

Keywords: Municipal amalgamation; Regional migration; Neighborhood characteristics; Local labor markets (search for similar items in EconPapers)
JEL-codes: H75 J23 R23 R53 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2024-08-04
New Economics Papers: this item is included in nep-lma, nep-mig and nep-ure
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