Redistributive Public Employment
Alberto Alesina, Reza Baqir, William Easterly
NBER Working Paper No. 6746
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.
Published: Alesina, Alberto, Reza Baqir and William Easterly. "Redistributive Public Employment," Journal of Urban Economics, 2000, v48(2,Sep), 219-241.