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

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  • Sven Wardenburg

    (Department of Geography, Philipps University Marburg)

  • Thomas Brenner

    (Department of Geography, Philipps University Marburg)

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.

Suggested Citation

  • Sven Wardenburg & Thomas Brenner, 2019. "The impact of place-based policies on perceived regional living conditions across German labor market regions. Examining the impacts on migration flows," Working Papers on Innovation and Space 2019-02, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:pum:wpaper:2019-02
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    More about this item

    Keywords

    amenities; fiscal equalization; impulse-response functions; living conditions; migration; policy; SpVar;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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