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Income Distribution Effects from Local Public Expenditures in the Swedish Municipalities


  • Wikström, Magnus

    () (Department of Economics, Umeå University)


This paper studies the effects of local public policy on the distribution of pre-tax income from employment in the Swedish municipalities by estimating an income shares model. Three categories of local public spending are recognized; social expenditures, primary and secondary education expenditures and recreational expenditures. It is found that social expenditures affect the within-municipality distribution of income, whereas no effects can be found for education and recreation. For social expenditures, the effect is to concentrate a larger portion of total income among the middle income groups, and to decrease the portion of total income from high income earners and low income earners. This evidence is consistent with the view that local public expenditures may affect the composition of the local population.

Suggested Citation

  • Wikström, Magnus, 1999. "Income Distribution Effects from Local Public Expenditures in the Swedish Municipalities," Umeå Economic Studies 515, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0515

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    Cited by:

    1. Almanzar, Miguel & Torero, Maximo, 2017. "Distributional Effects of Growth and Public Expenditures in Africa: Estimates for Tanzania and Rwanda," World Development, Elsevier, vol. 95(C), pages 177-195.

    More about this item


    Income distribution; Local public expenditures;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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