Alesina, Alberto.
Redistributive Public Employment /
Alberto Alesina, Reza Baqir, William Easterly.
- Cambridge, Mass. National Bureau of Economic Research 1998.
- 1 online resource: illustrations (black and white);
- NBER working paper series no. w6746 .
- Working Paper Series (National Bureau of Economic Research) no. w6746. .
October 1998.
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; then we provide evidence that in US 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.
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