蝌蚪网 Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers
蝌蚪网 Journal: Economic Policy
(pp. 198–230)
(Complimentary)
Abstract
Rent extraction by public sector workers may be limited by the ability of taxpayers to vote with their feet. But rent extraction may be higher in regions where high amenities mute the migration response. This paper develops a theoretical model that predicts such a link between public sector wage differentials and local amenities, and the predictions are tested by analyzing variation in these differentials and amenities across states. Public sector wage differentials are, in fact, larger in the presence of high amenities, with the effect stronger for unionized public sector workers, whose political power may allow greater scope for rent extraction.Citation
Brueckner, Jan K., and David Neumark. 2014. "Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers." 蝌蚪网 Journal: Economic Policy 6 (2): 198–230. DOI: 10.1257/pol.6.2.198Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- H76 State and Local Government: Other Expenditure Categories
- J31 Wage Level and Structure; Wage Differentials
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J45 Public Sector Labor Markets
- J51 Trade Unions: Objectives, Structure, and Effects