DP9986 | Local quality of government and migration. Evidence for European regions

Publication Date

25/05/2014

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Abstract

In this paper we investigate the impact of local quality of government on the attractiveness of European regions to migrants. The analysis is based on panel data estimations of 254 regions for the period between 1995 and 2009. Different instrumental variable techniques have been employed in order to assess the extent to which differences in local quality of government affect migration decisions and to account for potential endogeneity concerns. The results point towards an important influence of specific factors related to the regional quality of government, such as the fight against corruption or government effectiveness, on the ability of European regions to attract future residents.