We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing 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 within the country. Empirically, using a panel of European regions from 1995-2007, we find evidence that public employment is systematically higher in low productivity regions. The latter effect is stronger in countries with higher levels of regional inequality.
S. G., Kessing e Chiara, Strozzi. "The Regional Distribution of Public Employment: Theory and Evidence" Working paper, IZA DISCUSSION PAPER, IZA, 2012.
Titolo: | The Regional Distribution of Public Employment: Theory and Evidence |
Autore/i: | S. G., Kessing; Strozzi, Chiara |
Autore/i UNIMORE: | |
Data di pubblicazione: | 2012 |
Mese di pubblicazione: | Marzo |
Serie: | IZA DISCUSSION PAPER |
URL: | http://ftp.iza.org/dp6449.pdf http://legacy.iza.org/en/webcontent/publications/papers/viewAbstract?dp_id=6449 |
Citazione: | S. G., Kessing e Chiara, Strozzi. "The Regional Distribution of Public Employment: Theory and Evidence" Working paper, IZA DISCUSSION PAPER, IZA, 2012. |
Tipologia | Working paper |
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dp6449.pdf | Versione dell'editore (versione pubblicata) | Open Access Visualizza/Apri |

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