Regional transfer multipliers
Subject
Economics
Publishing details
CEPR Discussion Paper
Authors / Editors
Corbi R; Papaioannou E; Surico P
Biographies
Publication Year
2018
Abstract
A series of discontinuities in the allocation mechanism of federal transfers to municipal governments in Brazil allow us to identify the causal effect of public spending on local labor markets, using a 'fuzzy' Regression Discontinuity Design (RDD). Our estimates imply a cost per job of about 8,000 US dollars per year and a local income multiplier around two. The effect comes mostly from employment in services and is more pronounced among less financially developed municipalities.
Keywords
'Fuzzy' RD; Employment; Government spending; Natural Experiment; Wages
Series Number
DP13304
Series
CEPR Discussion Paper