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The effects of grants and wages on municipal labour demand
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2004 (English)In: Labour Economics, ISSN 0927-5371, E-ISSN 1879-1034, Vol. 11, no 3, 315-334 p.Article in journal (Refereed) Published
Abstract [en]

In this paper we investigate the determinants of municipal labour demand in Sweden 1988–1995. Utilising a major grant reform in 1993, through which a switch from mainly targeted to mainly general central government grants occurred, we are able to identify which type of grants that have the largest effects on municipal employment. We find a larger municipal employment elasticity with respect to grants before the reform, which we interpret as evidence that general grants have less employment effects than specific ones. We further find a short run wage elasticity of approximately -0.5 and a long run ditto of approximately -0.9, and a quite sluggish adjustment process: only 60% of the desired change in municipal employment is implemented in the first year.

Place, publisher, year, edition, pages
2004. Vol. 11, no 3, 315-334 p.
Keyword [en]
municipal labour demand, panel data, median voter
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-68543DOI: 10.1016/j.labeco.2003.07.003OAI: oai:DiVA.org:uu-68543DiVA: diva2:96454
Available from: 2005-03-02 Created: 2005-03-02 Last updated: 2017-11-21Bibliographically approved

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Dahlberg, MatzMörk, Eva

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