. In this paper we try to shed some light on the determinants of the regional allocation of public employees by the Central and Regional Governments in Spain. We provide some evidence that public employment might have been used by the Central Government as a instrument to favour those regions with lower levels of GDP per capita and higher unemployment rates. Also we find that the number of public employees is larger in those regions in which there is a coincidence between the colors of the ruling parties in the Regional and Central Governments. However, we do not find strong empirical evidence on the determinants of public employment by the Regional Governments, other that the process of decentralization and the level of GDP per capita.
Public Employment; Regional Redistribution; Fiscal Policy Instruments.
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