FREILLE SEBASTIAN
Congresos y reuniones científicas
Título:
Fiscal transfers, regional labour markets and economic convergence
Autor/es:
CAPELLO, MARCELO; FIGUERAS, ALBERTO; FREILLE, SEBASTIÁN; MONCARZ, PEDRO
Lugar:
Mendoza, Argentina
Reunión:
Congreso; XLIV Reunión Anual de la Asociación Argentina de Economía Política; 2009
Resumen:
This paper examines the relationship between federal transfers and the existence of a wage premium for the public sector relative to the private sector in Argentina. Using theoretical insights from two related literatures, we provide a simple conceptual framework aimed at specifying the basic relations and to motivate the econometric model.  Our results suggest that the public sector pays a wage premium relative to the wages paid by the private sector. This premium is increasing in the level of per capita federal transfers. We also find no significant evidence suggesting that federal transfers have an effect on wages in the private manufacturing sector at the aggregate level. However, there is some evidence as to a significant positive relationship between federal transfers and wages paid to workers with less formal education; for jobs requiring a technical or professional qualification the relationship between wages and federal transfers is negative and significant. These results broadly support our hypothesis that the private sector faces harder competition in the labour market in provinces which receive larger transfers from the central government.