Using Swedish micro data, the paper examines the impact of local public services on community choice. The choice of community is modelled as a choice between a discrete set of alternatives. It is found that, given taxes, high spending on child care attracts migrants. Less conclusive results are obtained with respect to the role of spending on education and elderly care. High local taxes deter migrants. Relaxing the independence of the irrelevant alternatives assumption, by estimating a mixed logit model, has a significant impact on the results.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.