How does municipality tax impact on net regional mobility in Sweden?

Sammanfattning: The primary objective of this essay is to test how the municipality tax rate affects net regional migration in Sweden. All the 290 municipalities where included between the years 2008 to 2016. The relationship is estimated by panel data using a fixed effect model. The main findings of this study suggest that there is no correlation between municipality tax rate and net regional migration, ceteris paribus. The result is partly in line with theory and shows slightly different finding than Edmark and Ågren (2008).