The regional distribution of public employment: theory and evidence

Sebastian Kessing and Chiara Strozzi

Regional Studies, 2017, vol. 51, issue 7, 1100-1114

Abstract: 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.

Date: 2017
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Related works:
Working Paper: The Regional Distribution of Public Employment:Theory and Evidence (2016)
Working Paper: The Regional Distribution of Public Employment: Theory and Evidence (2012)
Working Paper: The Regional Distribution of Public Employment: Theory and Evidence (2012)
Working Paper: The Regional Distribution of Public Employment: Theory and Evidence (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:regstd:v:51:y:2017:i:7:p:1100-1114

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DOI: 10.1080/00343404.2016.1156239

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