General revenue sharing and public sector unions

Laura Feiveson

Journal of Public Economics, 2015, vol. 125, issue C, 28-45

Abstract: In this paper, I find that in the context of a large intergovernmental general revenue sharing program implemented from 1972 to 1986, cities increased expenditures one-for-one with federal grants, which is suggestive of a large flypaper effect. Furthermore, I find that cities in states with pro-union collective bargaining laws spent more than half of the transfers on increased wages, while cities in states without such laws spent a greater fraction on increased government services. These latter findings suggest that public sector unions play an important role in determining the usage and impact of intergovernmental grants.

Keywords: Public sector unions; General revenue sharing; Intergovernmental transfers; Fiscal stimulus (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:125:y:2015:i:c:p:28-45

DOI: 10.1016/j.jpubeco.2015.03.004

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