Relocation of public sector workers: Evaluating a place-based policy
Giulia Faggio ()
Journal of Urban Economics, 2019, vol. 111, issue C, 53-75
This paper investigates the local labor market impact of a UK relocation initiative – the 2004 Lyons Review. The review resulted in the dispersal of about 25,000 civil service jobs out of London and the South East towards other UK destinations. This study aims to detect whether the inflow of public sector jobs crowded out private sector activity or stimulated the local provision of jobs in the private sector. Focusing on short-term effects, I find that the relocation initiative raised private sector employment in receiving areas and changed the sectoral distribution of local employment towards services. I also find evidence of displacement, i.e. a tendency for private businesses to locate closer to a relocation site, moving out of areas at 1–2 km and 2–3 km distances into areas at 0–1 km distance. These agglomeration effects appear highly localized: the largest policy impact is found in areas that received the relocated jobs with spillover effects reducing sharply over distance.
Keywords: Regional labor markets; Regional government policy; Job displacement (search for similar items in EconPapers)
JEL-codes: R23 R58 J61 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Relocation of Public Sector Workers: Evaluating a place-based policy (2016)
Working Paper: Relocation of public sector workers: evaluating a place-based policy (2015)
Working Paper: Relocation of Public Sector Workers: Evaluating a Place-based Policy (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:111:y:2019:i:c:p:53-75
Access Statistics for this article
Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange
More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().