Advanced Search
MyIDEAS: Login

Inter-Jurisdictional Competition for Firms: Jobs as Vehicles for Redistribution

Contents:

Author Info

Abstract

A model is built in which regions with redistributive goals compete to attract mobile firms that provide jobs to their work forces. Regions are inhabited with an immobile population of disabled and able individuals. The aim of each regional government is to provide support for the disabled, who cannot work. Able individuals may work, be involuntary unemployed because of frictions in the regional labour market, or choose to be voluntary unemployed. A region's redistributive policies affect the labour participation choice of able individuals thereby determining the size of its labour force. The size of the regional workforce, together with the possible taxation of firms, make a region more or less attractive to firms. A key finding is that allowing regions to engage in tax competition may be efficient. If regions cannot tax firms, they will compete by implementing inefficient redistributive policies. Nous considérons un monde dans lequel des régions en concurrence et ayant des objectifs redistributifs tentent d'attirer des firmes pouvant fournir des emplois à leur population active. Les régions sont peupléees d'individus immobiles et qui sont aptes ou inaptes au travail. L'objectif de chaque gouvernement régional est d'aider ceux qui sont inaptes au travail. Ceux qui sont aptes au travail peuvent trouver un emploi, être involontairement en chômage à cause de frictions sur le marché du travail régional ou être volontairement en chômage. Les politiques redistributives ont un impact sur les choix de participation des individus aptes au travail, déterminant par le fait même la taille de la population active d'une région. La taille de sa population active, de même que le niveau des taxes qu'elle impose aux firmes, font qu'une région est plus ou moins attirante pour les firmes. Nous montrons qu'il peut être efficace de permettre à des régions en concurrence de taxer les firmes. Si les régions ne peuvent taxer les firmes, elles se concurrenceront en choisissant de mettre en place des politiques redistributives inefficaces.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85.ps
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85.ps [301 Moved Permanently]--> http://www.economie.uqam.ca/CREFE/cahiers/cah85.ps [301 Moved Permanently]--> http://economie.esg.uqam.ca/CREFE/cahiers/cah85.ps). If this is indeed the case, please notify (Stéphane Pallage)
File Function: Main text
Download Restriction: no

File URL: http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85.pdf
Our checks indicate that this address may not be valid because: 500 Internal Server Error (http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85.pdf [301 Moved Permanently]--> http://www.economie.uqam.ca/CREFE/cahiers/cah85.pdf [301 Moved Permanently]--> http://economie.esg.uqam.ca/CREFE/cahiers/cah85.pdf). If this is indeed the case, please notify (Stéphane Pallage)
File Function: Main text
Download Restriction: no

File URL: http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85r.ps
Our checks indicate that this address may not be valid because: 404 Not Found (http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85r.ps [301 Moved Permanently]--> http://www.economie.uqam.ca/CREFE/cahiers/cah85r.ps [301 Moved Permanently]--> http://economie.esg.uqam.ca/CREFE/cahiers/cah85r.ps). If this is indeed the case, please notify (Stéphane Pallage)
File Function: Main text (revised)
Download Restriction: no

File URL: http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85r.pdf
Our checks indicate that this address may not be valid because: 500 Internal Server Error (http://www.unites.uqam.ca/eco/CREFE/cahiers/cah85r.pdf [301 Moved Permanently]--> http://www.economie.uqam.ca/CREFE/cahiers/cah85r.pdf [301 Moved Permanently]--> http://economie.esg.uqam.ca/CREFE/cahiers/cah85r.pdf). If this is indeed the case, please notify (Stéphane Pallage)
File Function: Main text (revised)
Download Restriction: no

Bibliographic Info

Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 85.

as in new window
Length: 33 pages
Date of creation: May 1999
Date of revision: Jul 1999
Handle: RePEc:cre:crefwp:85

Contact details of provider:
Postal: P.O. Box 8888, Downtown Station, Montreal (Canada) Quebec, H3C 3P8
Phone: (514) 987-6181
Fax: (514) 987-8494
Email:
Web page: http://ideas.uqam.ca/CREFE/
More information through EDIRC

Related research

Keywords: Inter-Jurisdictional Competitition; Redistributive Policies; Unemployment;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Johnson, G.E. & Layard, P.R.G., 1987. "The natural rate of unemployment: Explanation and policy," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 16, pages 921-999 Elsevier.
  2. Drazen, Allan, 1986. "Optimal Minimum Wage Legislation," Economic Journal, Royal Economic Society, vol. 96(383), pages 774-84, September.
  3. KEEN, Michael & MARCHAND, Maurice, 1996. "Fiscal Competition and the Pattern of Public Spending," CORE Discussion Papers 1996001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. CREMER, Helmuth & FOURGEAUD, Virginie & LEITE MONTEIRO, Manuel & MARCHAND, Maurice, 1995. "Mobility and Redistribution : A Survey," CORE Discussion Papers 1995066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Lockwood, Ben, 1999. "Inter-regional insurance," Journal of Public Economics, Elsevier, vol. 72(1), pages 1-37, April.
  6. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
  7. Robin Boadway & Katherine Cuff, 1999. "Monitoring Job Search as an Instrument for Targeting Transfers," Working Papers 982, Queen's University, Department of Economics.
  8. Wildasin, D.E., 1992. "Income Restribution and Migration," Papers 92-003, Indiana - Center for Econometric Model Research.
  9. Boadway, Robin & Keen, Michael, 2000. "Redistribution," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 12, pages 677-789 Elsevier.
  10. Joseph Stiglitz, 1999. "Taxation, Public Policy, and Dynamics of Unemployment," International Tax and Public Finance, Springer, vol. 6(3), pages 239-262, August.
  11. Guesnerie, Roger & Roberts, Kevin, 1987. "Minimum wage legislation as a second best policy," European Economic Review, Elsevier, vol. 31(1-2), pages 490-498.
  12. Boskin, Michael J, 1973. "Local Government Tax and Product Competition and the Optimal Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 203-10, Jan.-Feb..
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Robin Boadway & Katherine Cuff & Nicolas Marceau, 2000. "Redistribution and Employment Policies with Endogenous Unemployment," Cahiers de recherche CREFE / CREFE Working Papers 121, CREFE, Université du Québec à Montréal.
  2. Marceau, Nicolas, 2008. "La concurrence entre gouvernements est-elle bénéfique?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(4), pages 365-390, Décembre.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cre:crefwp:85. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stéphane Pallage).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.