Fiscal Transfers, Public Sector Wage Premium and the Effects on Private Wages
DOI:
https://doi.org/10.55444/2451.7321.2009.v47.n2.3864Keywords:
inter-governmental transfers , labour markets, wage premium, fiscal policyAbstract
We examine the relationship between federal transfers, the existence of a wage premium for the public sector and its effects on private wages in Argentina. The empirical analysis is based on the theoretical presumption that federal fiscal transfers to the different regions are being used to finance more public employment therefore discouraging private activity. The results suggest that the public sector pays a wage premium relative to the private sector. This premium is increasing in the level of per capita federal transfers. There is no evidence of an overall positive effect on wages in the private manufacturing sector. However, we find a significant positive relationship between federal transfers and wages paid to workers with less formal education; for jobs requiring a technical or profesional qualification the relationship is negative. These results broadly support the hypothesis that the private sector faces harder competition in the labour market in provinces which receive larger transfers from the central government.
Downloads
References
Alesina, A., S. Ardagna, R. Perotti, and F. Schiantarelli (2002). “Fiscal policy, profits and investment”, The American Economic Review, 92, 571-589.
Balassa, B. (1964). “The purchasing power parity doctrine: a reappraisal”, Journal of Political Economy, 72, 584-596.
Baumol, W. J. (1967). “Macroeconomics of unbalanced growth: The anatomy of urban crisis”. The American Economic Review, 57, 415–426.
Capello, M. and A. Figueras (2007). “Enfermedad holandesa en las jurisdicciones subnacionales: Una explicación del estancamiento”. Revista Cultura Economica, 25, 15–24.
Capello, M. and C. Ponce (1997). “Sector publico argentino: un problema de ilusión fiscal ?” In Lecturas de Politica Economica Argentina, Figueras, A. and Díaz Cafferata (eds), A. EUDECOR: Córdoba.
Capello, M., A. Figueras, N. Grión and P. Moncarz (2008). “Los potenciales efectos perversos de las transferencias fiscales a los gobiernos subnacionales”. 43 Reunión Anual de la Asociación Argentina de
Economía Política.
Díaz Cafferata, A., A. Figueras, E. Capmourteres, and P. Moncarz (1999). “El desempleo como fenómeno regional”. Technical Report 12, CECYT-FACPCE: Buenos Aires.
Figueras, A. (1991). “Efectos Macroeconómicos en Economías Regionales”. PhD thesis, Facultad de Ciencias Económicas, Universidad Nacional de Córdoba.
Figueras, A. (1992). “Economías regionales, políticas macro”. XXVII Reunión Anual de la Asociación Argentina de Economía Política.
Figueras, A. (2008). Economia Argentina. EUDECOR: Córdoba.
Figueras, A. and C. Ponce (1998). “El problema regional en Argentina”. Instituto de Economía y Finanzas, Facultad de Ciencias Económicas, UNC. Serie Estudios 29.
Figueras, A., J. Arrufat and M. Capello (2009). El desafio del territorio:Un analisis de las economias regionales. Asociación Cooperadora Facultad de Ciencias Economicas, UNC.
Hirschman, A. O. (1958). The strategy of economic development. Yale University Press: New Haven.
Kaufman, J. and T. Foran (1971). “The minimum wage and poverty”. In J. F. Burton Jr. et al. (eds), Readings in Labor Market Analysis. Holt, Rinehart and Winston, Inc.
Kessler, A. and C. Lessmann (2009). “Interregional Redistribution and Regional Disparities: How Equalization Does (Not) Work”. Simon Fraser University, mimeo.
Lewis, A. W. (1954). “Economic development with unlimited supplies of labour”. The Manchester School, 22, 139–191.
Llach, J. J. (1988). “Mercados de trabajo, términos del intercambio externo, y salarios reales en el largo plazo. La Argentina y America Latina: 1940-1985”. In Empleo, inflacion y comercio internacional,
Villanueva, J. (ed). Editorial Tesis: Buenos Aires.
Marqués Sevillano, J. M. and J. Rosselló Villalonga (2004). “Public employment and regional redistribution in Spain”, Hacienda Publica Espanola, 170, 59-80.
Porto, A. (1989). “Finanzas provinciales: Análisis comparativo”. 37 Jornadas de Finanzas Publicas.
Richardson, H. (1977). Teoria del Crecimiento Regional. Piramide:Madrid. Ruarte Bazan, R. (2008). “Saldos fiscales regionales del fisco nacional en el federalismo argentino”. 41 Jornadas Internacionales de Finanzas Públicas.
Downloads
Published
Issue
Section
License
Copyright (c) 2009 Marcelo Capello, Alberto José Figueras, Sebastián Freille, Pedro E. Moncarz
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who have publications with this journal agree to the following terms:
Authors retain their copyright and grant the journal the right of first publication of their work, which is simultaneously subject to the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License that allows third parties to share the work provided that its author and first publication in this journal are indicated.
Authors may adopt other non-exclusive licensing arrangements for distribution of the published version of the work (e.g. depositing it in an institutional telematic archive or publishing it in a monographic volume) as long as the initial publication in this journal is indicated.
Authors are allowed and encouraged to disseminate their work via the Internet (e.g. in institutional telematic archives or on their website) before and during the submission process, which can lead to interesting exchanges and increase citations of the published work. (See The Open Access Effect)
