The Regional Distribution of Public Employment: Theory and Evidence
AbstractWe analyze the optimal regional pattern of public employment in an information-constrained econd-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-effciency trade-off. The optimal pattern exhibits higher levels of public employment in low productivity regions and is more pronounced the higher is the degree of regional inequality within the country. Empirically, using a panel of European regions from 1995-2007, we find evidence that public employment is systematically higher in low productivity regions. The latter effect is stronger in countries with higher levels of regional inequality.
Download InfoIf 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.
Bibliographic InfoPaper provided by University of Modena and Reggio E., Faculty of Economics "Marco Biagi" in its series Department of Economics with number 0682.
Length: pages 27
Date of creation: Feb 2012
Date of revision:
Public employment; redistribution; regional inequality; European regions;
Other versions of this item:
- Kessing, Sebastian G. & Strozzi, Chiara, 2012. "The Regional Distribution of Public Employment: Theory and Evidence," IZA Discussion Papers 6449, Institute for the Study of Labor (IZA).
- Sebastian G. Kessing & Chiara Strozzi, 2012. "The Regional Distribution of Public Employment: Theory and Evidence," Center for Economic Research (RECent) 079, University of Modena and Reggio E., Dept. of Economics.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-16 (All new papers)
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.:
- Jaimovich, Esteban & Rud, Juan Pablo, 2014.
"Excessive public employment and rent-seeking traps,"
Journal of Development Economics,
Elsevier, vol. 106(C), pages 144-155.
- Esteban Jaimovich & Juan Pablo Rud, 2009. "Excessive Public Employment and Rent-Seeking Traps," Carlo Alberto Notebooks 118, Collegio Carlo Alberto.
- Blomquist, Sören & Christiansen, Vidar, 2007.
"Public Provision of Private Goods and Nondistortionary Marginal Tax Rates,"
Working Paper Series
2007:7, Uppsala University, Department of Economics.
- S�ren Blomquist & Vidar Christiansen & Luca Micheletto, 2010. "Public Provision of Private Goods and Nondistortionary Marginal Tax Rates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 1-27, May.
- Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2008. "Public Provision of Private Goods and Nondistortionary Marginal Tax Rates," CESifo Working Paper Series 2303, CESifo Group Munich.
- Giuseppe Marotta, 1997. "Does trade credit redistribution thwart monetary policy? Evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1619-1629.
- Alberto Alesina & Stephan Danninger & Massimo Rostagno, 1999.
"Redistribution Through Public Employment: The Case of Italy,"
NBER Working Papers
7387, National Bureau of Economic Research, Inc.
- Albert Alesina & Stephan Danninger & Massimo Rostagno, 2001. "Redistribution Through Public Employment: The Case of Italy," IMF Staff Papers, Palgrave Macmillan, vol. 48(3), pages 2.
- Stephan Danninger & Alberto Alesina & Massimo V. Rostagno, 1999. "Redistribution Through Public Employment - The Case of Italy," IMF Working Papers 99/177, International Monetary Fund.
- Lars-Erik Borge & Egil Matsen, 2004. "Public Employment and Regional Risk Sharing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 215-230, 06.
- Naito, Hisahiro, 1999. "Re-examination of uniform commodity taxes under a non-linear income tax system and its implication for production efficiency," Journal of Public Economics, Elsevier, vol. 71(2), pages 165-188, February.
- Alberto Alesina & Reza Baqir & William Easterly, 1998.
"Redistributive Public Employment,"
NBER Working Papers
6746, National Bureau of Economic Research, Inc.
- Robin Boadway & Michael Keen, 1991.
"Public Goods, Self-Selection and Optimal Income Taxation,"
828, Queen's University, Department of Economics.
- Boadway, Robin & Keen, Michael, 1993. "Public Goods, Self-Selection and Optimal Income Taxation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 463-78, August.
- Michael Lundholm & Hans Wijkander, 2008. "Why Do Scandinavian Governments Employ So Many and the United States Government So Few?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(3), pages 364-379, September.
- Enlinson Mattos & Vitor França, 2011. "Public employment and income redistribution: causal evidence for Brazilian municipalities," Public Choice, Springer, vol. 146(1), pages 43-73, January.
- Marina Murat & Barbara Pistoresi, 2009.
"Emigrant and immigrant networks in FDI,"
Applied Economics Letters,
Taylor & Francis Journals, vol. 16(12), pages 1261-1264.
- Charles Blackorby & Craig Brett, 2004. "Production Efficiency and the Direct-Indirect Tax Mix," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 165-180, 02.
- Jukka Pirttilä & Matti Tuomala, 2005. "Public Versus Private Production Decisions: Redistribution and the Size of the Public Sector," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 61(1), pages 120-, March.
- Wilson, John D., 1982. "The optimal public employment policy," Journal of Public Economics, Elsevier, vol. 17(2), pages 241-258, March.
- Rodrik, Dani, 2000. "What Drives Public Employment in Developing Countries?," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 229-43, October.
- KaiA. Konrad & SebastianG. Kessing, 2008.
"Time Consistency and Bureaucratic Budget Competition,"
Royal Economic Society, vol. 118(525), pages 1-15, 01.
- Sebastian Kessing & Kai A. Konrad, 2006. "Time Consistency and Bureaucratic Budget Competition," CESifo Working Paper Series 1791, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Morselli).
If references are entirely missing, you can add them using this form.