{"id":403778,"date":"2011-04-18T17:08:50","date_gmt":"2011-04-18T15:08:50","guid":{"rendered":"https:\/\/ieb.ub.edu\/publicaciones\/2011-42-beaches-sunshine-and-public-sector-pay-theory-and-evidence-on-amenities-and-rent-extraction-by-government-workers-2\/"},"modified":"2011-04-18T17:08:50","modified_gmt":"2011-04-18T15:08:50","slug":"2011-42-beaches-sunshine-and-public-sector-pay-theory-and-evidence-on-amenities-and-rent-extraction-by-government-workers","status":"publish","type":"publicacion","link":"https:\/\/ieb.ub.edu\/en\/publications\/2011-42-beaches-sunshine-and-public-sector-pay-theory-and-evidence-on-amenities-and-rent-extraction-by-government-workers\/","title":{"rendered":"2011\/42: Beaches, sunshine, and public-sector pay: theory and evidence on amenities and rent extraction by government workers"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>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\u2019s 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.<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"tipologia_publicacion":[21],"programa_rel":[84,84,84],"class_list":["post-403778","publicacion","type-publicacion","status-publish","hentry","tipologia_publicacion-working-paper"],"acf":[],"_links":{"self":[{"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/publicacion\/403778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/publicacion"}],"about":[{"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/types\/publicacion"}],"author":[{"embeddable":true,"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":0,"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/publicacion\/403778\/revisions"}],"wp:attachment":[{"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/media?parent=403778"}],"wp:term":[{"taxonomy":"tipologia_publicacion","embeddable":true,"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/tipologia_publicacion?post=403778"},{"taxonomy":"programa_rel","embeddable":true,"href":"https:\/\/ieb.ub.edu\/en\/wp-json\/wp\/v2\/programa_rel?post=403778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}