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Relocation of Public Sector Workers: Evaluating a Place-based Policy

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  • Giulia Faggio

Abstract

This paper assesses the local labour market impact of a UK public sector relocation initiative labeled the Lyons Review. The review resulted in the dispersal of more than 25,000 civil servants out of London and the South East towards other UK destinations. The objective of the paper is to detect whether inflows of public sector jobs have crowded out private sector activity or stimulated the local provision of additional jobs in the private sector. By applying a difference-in-difference approach, I evaluate the policy impact comparing areas in close proximity to a relocation site with areas further away. I find that the dispersal of public sector workers that followed the implementation of the Lyons Review had a positive impact on local services with a negative, but weaker, impact on manufacturing.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0155.

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Date of creation: Feb 2014
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Handle: RePEc:cep:sercdp:0155

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: Economic development; regional labour markets; regional government policy; job displacement;

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