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Relocating to Peripheral Cities

Development and Diversity From Relocating Government Jobs

Bibliographic Data

ID21352743
AuthorsPeter Sandholt Jensen (0000-0003-1905-6859, Department of Economics and Statistics Linnaeus University Sweden), Poul Jensen (Linnaeus University), Torben Dall Schmidt (0000-0002-7662-1669, Department of Economics University of Southern Denmark Odense Denmark, corresponding author), Jens Fyhn Lykke Sørensen (0000-0003-1227-1783, Department of Political Science and Public Management Danish Centre for Rural Research, University of Southern Denmark Esbjerg Denmark)
Year2026
Volume66
Issue3
Pages830-843
Publication date2026-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Regional Science (JOURNAL)
Journal identifiersISSN: 0022-4146 • E-ISSN: 1467-9787
PublisherWiley (PUBLISHER • GB)
DOI10.1111/jors.70040
OpenAlexW7117760811
LanguageEN
References cited21

The local labor market effects of relocating central government jobs to cities in rural municipalities is investigated by considering two small‐scale interventions by the Danish government in the mid‐2000s. We leverage the Synthetic Control Method to compare the two affected municipalities to a synthetic counterfactual. Results show that relocating central government jobs: (1) increased government employment; (2) had no impact on private employment; and (3) had little impact on diversity even if (1) and (2) suggest otherwise. These results add new insights into the effects of small‐scale relocations relative to previous contributions

Central government · Control (management) · Diversity (politics) · Government (linguistics) · Leverage (statistics) · Local government · Psychological intervention · Agricultural Economics and Policy · Regional Economics and Spatial Analysis · Rural development and sustainability

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