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Redistributive Public Employment

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

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.

Suggested Citation

  • Easterly, William & Baqir, Reza & Alesina, Alberto, 2000. "Redistributive Public Employment," Scholarly Articles 4553013, Harvard University Department of Economics.
    • Handle: RePEc:hrv:faseco:4553013
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    References listed on IDEAS

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