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Fiscal Institutions and Wage Bargaining in the Local Public Sector

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  • Bjarne Strøm

Abstract

In a theoretical analysis of the properties of different wage setting and financing systems in the local public sector, two financing systems are considered. A benchmark model with local financing through local taxes is compared with a system of centralized financing through grants, where taxes are decided at the national level. It is shown that the wage outcomes under centralized financing depend heavily on the order of moves in the budgetary game between the central and local levels. JEL Classification: H23; J45

Suggested Citation

  • Bjarne Strøm, 1999. "Fiscal Institutions and Wage Bargaining in the Local Public Sector," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(1), pages 67-82, March.
    • Handle: RePEc:bla:scandj:v:101:y:1999:i:1:p:67-82
    DOI: 10.1111/1467-9442.00141
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    Citations

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    Cited by:

    1. Gabriele Cardullo, 2017. "The Welfare and Employment Effects of Centralized Public Sector Wage Bargaining," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(2), pages 490-510, April.
    2. Paolo Polidori & Désirée Teobaldelli, 2017. "Identity, Incentives, and Their Dynamics in the Production of Publicly Provided Goods," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 73(1), pages 77-102, March.
    3. Gabriele Cardullo, 2012. "Public Sector Wage Bargaining, Unemployment, and Inequality," DEP - series of economic working papers 2/2012, University of Genoa, Research Doctorate in Public Economics.
    4. Torberg Falch & Bjarne Strøm, 2003. "Wage Bargaining and Political Strength in the Public Sector," Working Paper Series 3203, Department of Economics, Norwegian University of Science and Technology.
    5. Johansen, Kare & Strom, Bjarne, 2001. "Wages and Politics: Evidence from the Norwegian Public Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(3), pages 311-331, July.

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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