Local Income Taxation and Migration: Estimating the Effect of Local Income Tax Rates on Migration in a Tiebout Setting
This study examines the impact of local income taxation on migration by using the Tiebout hypothesis. By studying the municipalities in the old Malmöhus region during 1992-2012 it is found that the level of a local income tax rate does not deter migrants, while a high tax rate relative to the average in the area does. The study identifies that the tax rate of neighbouring municipalities affects mi