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The regional distribution of public employment: theory and evidence
The regional distribution of public employment: theory and evidence. Regional Studies. This article analyzes the optimal regional pattern of public employment in an information-constrained second-best redistribution policy. It shows that regionally differentiated public employment can serve as an expenditure side-tagging device, bypassing or relaxing the equity-efficiency trade-off. The optimal pattern exhibits higher levels of public employment in low-productivity regions and is more pronounced the higher is the degree of regional inequality. Empirically, using a panel of European regions from 1995 to 2007, the analysis finds evidence that public employment is systematically higher in low-productivity regions. The latter effect is stronger in countries with higher levels of regional inequality.
The regional distribution of public employment: theory and evidence
The regional distribution of public employment: theory and evidence. Regional Studies. This article analyzes the optimal regional pattern of public employment in an information-constrained second-best redistribution policy. It shows that regionally differentiated public employment can serve as an expenditure side-tagging device, bypassing or relaxing the equity-efficiency trade-off. The optimal pattern exhibits higher levels of public employment in low-productivity regions and is more pronounced the higher is the degree of regional inequality. Empirically, using a panel of European regions from 1995 to 2007, the analysis finds evidence that public employment is systematically higher in low-productivity regions. The latter effect is stronger in countries with higher levels of regional inequality.
The regional distribution of public employment: theory and evidence
Kessing, Sebastian G (author) / Strozzi, Chiara
Regional studies ; 51
2017
Article (Journal)
English
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