44th Congress of the European Regional Science Association: "Regions and Fiscal Federalism", 25th - 29th August 2004, Porto, Portugal
This study examines urban and rural destined/originated migration in Finland in 1996-1999 using a large micro-level data set. Three conclusions stand out from the results. Firstly, migrants not only differ from stayers but there are also many differences between migrants from and to rural and urban areas. In particular, rural-to-urban migrants are highly educated while those moving from urban to rural areas are not. Secondly, locational preferences vary according to the life-cycle: young and single individuals head to urban areas, whereas couples and retired persons tend to relocate from urban to rural areas. Thirdly, the results suggest that both rural-to-urban and urban-to-rural migration work to the benefit of the urban areas; hence regional disparities are likely to increase rather than decrease upon continuing migration.