Although Coraline's family moves from Michigan and it is never formally mentioned in the film, the movie is supposedly set in Ashland, Oregon. This is because the Laika Entertainment - the American stop-motion animation studios - is based in Oregon.
One way they portrayed evidence of their location was through the stage performers outside the Mulch shop and the signs over town when they drop off Charlie, Coraline's dad, right before they go school clothes shopping. This refers to the Oregon Shakespeare Festival that is held in Ashland.
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