CIECS   20730
CENTRO DE INVESTIGACIONES Y ESTUDIOS SOBRE CULTURA Y SOCIEDAD
Unidad Ejecutora - UE
congresos y reuniones científicas
Título:
Fiscal Transfers, Regional Labour Market and Economic Convergence
Autor/es:
M. CAPELLO, ALBERTO FIGUERAS, S. FREILLE Y P. MONCARZ
Lugar:
Mendoza
Reunión:
Congreso; XLIV Reunión Anual de la Asociación Argentina de Economia Política; 2009
Institución organizadora:
Asociación Argentina de Economia Política y UN de Cuyo
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