Redistributive Public Employment

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Redistributive Public Employment

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Title: Redistributive Public Employment
Author: Easterly, William; Baqir, Reza; Alesina, Alberto

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Citation: Alesina, Alberto, Reza Baqir, and William Easterly. 2000. Redistributive public employment. Journal of Urban Economics 48(2): 219-241.
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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.
Published Version: doi:10.1006/juec.1999.2164
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