Do Ukrainians Vote With Their Feet: Local Public Expenditures And Inter-Regional Migration

This paper explores whether Ukrainians “vote with their feet ” by migrating to the regions with relatively higher regional-level per capita public expenditures on education, healthcare services and social assistance. Using the data on inter-regional residential migration flows in 2002-2013 and controlling for the differences in relative wages and unemployment, the population density, the share o f young people and air pollution in a multiple regression model, it tries to test the validity o f the Tiebout hypothesis in Ukraine. The results lend some support for this hypothesis when Kyiv City is included in the sample o f regions, but not in a smaller sample without the capital city. Briefpolicy implications regarding fiscal decentralization and promotion o f internal migration in Ukraine conclude the paper.