Growth, migration and unemployment across Swedish municipalities
2013 (English)Report (Other (popular science, discussion, etc.))
Fundamental questions in economics are why some regions are richer than others, why their economic growth rates vary, whether their growth tends to converge and the key factors that contribute to the variations. These questions have not yet been fully addressed, but changes in the local tax base are clearly influenced by the average income growth rate, net migration rate, and changes in unemployment rates. Thus, the main aim of this paper is to explore in depth the interactive effects of these factors (and local policy variables) in Swedish municipalities, by estimating a proposed three-equation system. Our main finding is that increases in local public expenditures and income taxes have negative effects on subsequent local income growth. In addition, our results support the conditional convergence hypothesis, i.e. that average income tends to grow more rapidly in relatively poor local jurisdictions than in initially “richer” jurisdictions, conditional on the other explanatory variables.
Place, publisher, year, edition, pages
Borlänge: Högskolan Dalarna, 2013. , 29 p.
Working papers in transport, tourism, information technology and microdata analysis, ISSN 1650-5581 ; 2013:31
Research subject Komplexa system - mikrodataanalys
IdentifiersURN: urn:nbn:se:du-13506OAI: oai:DiVA.org:du-13506DiVA: diva2:678746