Regional income differences elucidated by facilities: A case study for the Netherlands

Abstract

In the Netherlands, there are differences in average income levels and in the provision of facilities between neighbourhoods. This paper examines its relationship by using CBS StatLine data for the period 2016-2021. It finds that the average distance to facilities negatively affects future average income levels on the neighbourhood level via the channel of migration; as the average distance to facilities declines, the net migration rate rises. This causes average incomes to increase, indicating that rich people who can afford it to move, move to those neighbourhoods. In addition, it finds that the provision of any facility to a neighbourhood is more important than the provision of many facilities. Also, a retail facility and mobility with a car is the most vital for a neighbourhood and attracts high income migrants.