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Redistributive Public Employment

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  • Alesina, Alberto
  • Baqir, Reza
  • Easterly, William

Abstract

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. Next, we provide evidence consistent with the prediction of the model, namely that in U.S. 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 & Baqir, Reza & Easterly, William, 2000. "Redistributive Public Employment," Journal of Urban Economics, Elsevier, vol. 48(2), pages 219-241, September.
    • Handle: RePEc:eee:juecon:v:48:y:2000:i:2:p:219-241
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