Abstract
This paper studies the impact of the special municipality reform in 2010 and the difference in fiscal structure on inter-county/city migration in Taiwan. Including 19 jurisdictions in Taiwan, we use both macro-level and micro-level analysis. Also, we use Difference-in-Differences method to see whether the upgrade of jurisdictions to special municipalities changes moving decisions before and after the reform. Our macro-level models use ordinary least squared(OLS)regression to investigate determinants of net in-migration rate during the period 2004 to 2013. At micro levels, we apply conditional logit model to identify the factors that affect the destination choice based on the data from Internal Migration Survey in 2007 and 2012. Our empirical results found evidence in registered residence that the special municipality reform affected inter-jurisdiction migration decisions in Taiwan, and the effect markedly differ by the ages of the householders. Furthermore, the jurisdictions with more abundant revenue sources were more likely to be chosen as the registered residence of household. However, higher expenditure on public goods and welfare did not appear to attract or help retain residents.