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oai:recercat.cat:2445/1165952025-11-19T20:44:04Zcom_2072_1057col_2072_478859col_2072_478917

00925njm 22002777a 4500 dc Brueckner, Jan K. author Neumark, David author 2017-10-13T13:55:25Z 2017-10-13T13:55:25Z 2011 The absence of a competitive market and the presence and strength of public-sector labor unions make it likely that public-sector pay reflects an element of rent extraction by government workers. In this paper, we test a specific hypothesis that connects such rent extraction to the level of local amenities. Specifically, although migration of taxpayers limits the extent of rent-seeking, public-sector workers may be able to extract higher rents in regions where high amenities mute the migration response. We develop a theoretical model that predicts such a link between public-sector wage differentials and local amenities, and we test the model’s predictions by analyzing variation in these wage differentials and amenities across states. The evidence reveals that public-sector wage differentials are, in fact, larger in the presence of high amenities, with the effect being stronger for unionized public-sector workers, who are likely better able to exercise political power in extracting rents. Igualtat retributiva Sector públic Variables (Matemàtica) Pay equity Public sector Variables (Mathematics) Beaches, sunshine, and public-sector pay: theory and evidence on amenities and rent extraction by government workers