Regional income growth and net migration in Sweden, 1970-1995

This paper concerns the regional growth pattern in Sweden, and the purpose is to analyse what factors determine the growth rate of average income and the net migration at the regional level. We find a negative relationship be tween the initial level of regional average income and subsequent income gr owth. The results also imply that the initial endowment of human capital (m easured as the percentage of the population with higher education) has a po sitive effect on the subsequent net migration. Other determinants of region al income growth and population movements are 'fixed endowments' (related t o geography and climate) and regional labour market characteristics.