Redistributive Public Employment
Politicians may use disguised' redistributive policies in order to circumvent opposition to explicit tax-transfer schemes. First, we present a theoretical model that formalizes this hypothesis; then we provide evidence that in US cities, politicians use public employment as such a redistributive device. We find that city employment is significantly higher in cities where income inequality and ethnic fragmentation are higher.
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- Alesina, Alberto & Rodrik, Dani, 1994.
"Distributive Politics and Economic Growth,"
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NBER Working Papers
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