Jakob Roland Munch

Arbejdspapir 2002:2

Abstract
This paper investigates how the local income tax rate and local public services affect migration patterns in Denmark. The analysis is based on an extensive micro dataset, and the methodological approach is a discrete choice model. It is found that the tax rate has a negative impact on the choice of municipality while expenditures on local public services have a positive impact. It is also found that each municipality can attract migrants by undertaking a balanced budget reduction.