The impact of public spending on the internal migration process: empirical evidence for the period 2002–2007

This study examines the determinants of internal migration in Peru during the period from 2002 to 2007, with an emphasis on the role of public spending. Using data from the 2007 National Census, this study identifies migration patterns between regions and estimates a model of migration determinants. It is assumed that potential migrants make decisions by comparing their region of origin with their destination region across a range of dimensions, including labor market conditions and the availability of public goods in education, health care, housing, and transportation. The empirical results are consistent with economic theory, showing a higher probability of migration to regions with higher average income and lower unemployment rates. Furthermore, there is evidence that public spending influences the population’s migration decisions, as it provides information about the public goods available in the destination region relative to the region of origin. (Audio: Department of Economic Publications)