000 02790cam a22003617 4500
001 w16797
003 NBER
005 20211020110947.0
006 m o d
007 cr cnu||||||||
008 210910s2011 mau fo 000 0 eng d
100 1 _aBrueckner, Jan K.
_96931
245 1 0 _aBeaches, Sunshine, and Public-Sector Pay:
_bTheory and Evidence on Amenities and Rent Extraction by Government Workers /
_cJan K. Brueckner, David Neumark.
260 _aCambridge, Mass.
_bNational Bureau of Economic Research
_c2011.
300 _a1 online resource:
_billustrations (black and white);
490 1 _aNBER working paper series
_vno. w16797
500 _aFebruary 2011.
520 3 _aThe absence of a competitive market may enable public-sector workers to extract rents from taxpayers in the form of high pay, especially when public-sector workers are unionized. On the other hand, this rent extraction may be suppressed by the ability of taxpayers to vote with their feet, leaving jurisdictions where public-sector workers extract high rents. However, although migration of taxpayers may limit rent-seeking, public-sector workers may be able to extract higher rents in regions where high amenities mute the migration response. We develop a theoretical model that predicts such a link between public-sector wage differentials and local amenities, and we test the model's predictions by analyzing variation in these wage differentials and amenities across states. We find that public-sector wage differentials are, in fact, larger in the presence of high amenities, with the effect stronger for unionized public-sector workers who are likely better able to exercise political power in extracting rents. The implication is that the mobility of taxpayers is insufficient to prevent rent-seeking behavior of public-sector workers from leading to higher public-sector pay.
530 _aHardcopy version available to institutional subscribers
538 _aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538 _aMode of access: World Wide Web.
588 0 _aPrint version record
690 7 _aJ45 - Public Sector Labor Markets
_2Journal of Economic Literature class.
690 7 _aJ48 - Public Policy
_2Journal of Economic Literature class.
690 7 _aJ61 - Geographic Labor Mobility • Immigrant Workers
_2Journal of Economic Literature class.
690 7 _aR10 - General
_2Journal of Economic Literature class.
700 1 _aNeumark, David.
710 2 _aNational Bureau of Economic Research.
830 0 _aWorking Paper Series (National Bureau of Economic Research)
_vno. w16797.
856 4 0 _uhttps://www.nber.org/papers/w16797
856 _yAcceso en lĂ­nea al DOI
_uhttp://dx.doi.org/10.3386/w16797
942 _2ddc
_cW-PAPER
999 _c331325
_d289887