A Macroeconomic Analysis of Regional Migration in Finland, 1975-95

1999

This study analyzes regional migration in the 85 Finnish subregions during the period 1975-95 using data on net in-migration rates. Both cross-section and panel data methods are employed. The regression analysis reveals that the direction of net in-migration flows can be explained by a set of regionally differing characteristics. Unemployment rates, tax rates, and the share of primary production affect net in-migration negatively, whereas the share of higher education and the growth of regional incomes have a positive effect. This indicates that regional disparities may not be alleviated by migration, but there is some evidence for a cumulative causation growth pattern induced by net in-mig…