%0 Report
        %A Kessing, Sebastian G.
%A Strozzi, Chiara
        %T The Regional Distribution of Public Employment: Theory and Evidence
        %D 2012
        %8 2012 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 6449
        %U https://www.iza.org/index.php/publications/dp6449
        %X We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-efficiency trade-off. The optimal pattern exhibits higher levels of public employment in low productivity regions and is more pronounced the higher is the degree of regional inequality within the country. Empirically, using a panel of European regions from 1995-2007, we find evidence that public employment is systematically higher in low productivity regions. The latter effect is stronger in countries with higher levels of regional inequality.
        %K public employment
%K redistribution
%K regional inequality
%K European regions