Redistributive Public Employment
Politicians may use â€œdisguisedâ€ 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.
|Date of creation:||2000|
|Date of revision:|
|Publication status:||Published in Journal of Urban Economics|
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- Alberto Alesina & Reza Baqir & William Easterly, 1999.
"Public Goods And Ethnic Divisions,"
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"Distributive Politics and Economic Growth,"
4551798, Harvard University Department of Economics.
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"Is Inequality Harmful for Growth?,"
American Economic Review,
American Economic Association, vol. 84(3), pages 600-621, June.
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"Openness, country size and government,"
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Elsevier, vol. 69(3), pages 305-321, September.
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- Francisco Rodríguez, 2004. "Inequality, Redistribution, And Rent-Seeking," Economics and Politics, Wiley Blackwell, vol. 16, pages 287-320, November.
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