Alesina, Alberto, Reza Baqir, and William Easterly. 2000. “Redistributive Public Employment.” Journal of Urban Economics 48: 219-41.
Abstract: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.
Last updated on 04/03/2013