Fiche du document
1 juin 2021
- handle: 10670/1.k0vm4i
- hal: hal-03389155
- SCIENCESPO: 2441/5tqdseqksb93a9s4o6tla4ftjs
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/hdl/2441/5tqdseqksb93a9s4o6tla4ftjs
http://creativecommons.org/licenses/by-nd/ , info:eu-repo/semantics/OpenAccess
Mots-clés
Local public goods Public service Market power Spatial economics H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H41 - Public Goods J - Labor and Demographic Economics/J.J4 - Particular Labor Markets/J.J4.J42 - Monopsony • Segmented Labor Markets J - Labor and Demographic Economics/J.J4 - Particular Labor Markets/J.J4.J45 - Public Sector Labor Markets R - Urban, Rural, Regional, Real Estate, and Transportation Economics/R.R1 - General Regional Economics/R.R1.R12 - Size and Spatial Distributions of Regional Economic ActivitySujets proches
Labor and laboring classesCiter ce document
Arthur Guillouzouic et al., « Local Public Goods and the Spatial Distribution of Economic Activity », HAL-SHS : économie et finance, ID : 10670/1.k0vm4i
Métriques
Partage / Export
Résumé
Using French data, we provide: a) causal evidence that a drop in local public goods provision decreases private sector activity, and b) evidence consistent with monopsony power of the public sector in local labor markets. We introduce a public sector with these two key characteristics in an otherwise standard spatial equilibrium model, and show that it delivers the main stylized facts established in our data, in particular, that the share of the public sector relative to the private is independent of the productivity of the city. We emphasize the tradeoffs between allowing governments to freely choose local public employment and wages (as in most of the US public sector), versus imposing rules that constrain public sector pay with some indexation to the local cost of living (as in many European countries). We show that wage indexation limits monopsony power – leading to a larger public sector – and is optimal if the indexation is sufficiently strong.