Can't Keep Up with the Joneses: How Relative Deprivation Pushes Internal Migration in Austria

Publication: Working/Discussion PaperWU Working Paper

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Abstract

We estimate the efect of regional income inequality on emigration rates of Austrian municipalities using a unique data set that is constructed based on individual level data from Austrian administrative registers. The register-based data contains information on the municipality of residence of all individuals aged 16 and over that have their main residency in Austria, as well as their income and socio-demographic characteristics. Aggregating this information to the municipality level allows us to assess the role of relative deprivation—a measure of relative income—on top of absolute income in shaping internal migration in Austria. We ind that increases in relative deprivation in a municipality lead to higher emigration from the municipality. Allowing for heterogeneous efects across income, education, and age groups reveals that the efect is stronger among those with comparably low levels of income, and among low skilled and young individuals.
Original languageEnglish
DOIs
Publication statusPublished - 2017

Publication series

SeriesINEQ Working Paper Series
Number5

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502010 Public finance
  • 502025 Econometrics
  • 502046 Economic policy
  • 507016 Regional economy

WU Working Paper Series

  • INEQ Working Paper Series

Keywords

  • INEQ Inequality & Society

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