Replication data for: Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers

Principal Investigator(s): View help for Principal Investigator(s) Jan K. Brueckner; David Neumark

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For-replication			10/13/2019 07:55:AM
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Project Citation:

Brueckner, Jan K., and Neumark, David. Replication data for: Beaches, Sunshine, and Public Sector Pay: Theory and Evidence on Amenities and Rent Extraction by Government Workers. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114856V1

Project Description

Summary: Rent extraction by public sector workers may be limited by the ability of taxpayers to vote with their feet. But rent extraction may be higher in regions where high amenities mute the migration response. This paper develops a theoretical model that predicts such a link between public sector wage differentials and local amenities, and the predictions are tested by analyzing variation in these differentials and amenities across states. Public sector wage differentials are, in fact, larger in the presence of high amenities, with the effect stronger for unionized public sector workers, whose political power may allow greater scope for rent extraction.

Scope of Project

JEL Classification:
      H75 State and Local Government: Health; Education; Welfare; Public Pensions
      H76 State and Local Government: Other Expenditure Categories
      J31 Wage Level and Structure; Wage Differentials
      J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
      J45 Public Sector Labor Markets
      J51 Trade Unions: Objectives, Structure, and Effects

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Published Versions

V1 [2019-10-13]

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