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Redistributive Public Employment Export

Journal of Urban Economics, Vol. 48, No. 2. (September 2000), pp. 219-241.

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employment partisanship publicsector redistribution usa

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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. Next, we provide evidence consistent with the prediction of the model, namely that in U.S. 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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