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Relocation of public sector workers: evaluating a place-based policy

Faggio, Giulia (2015) Relocation of public sector workers: evaluating a place-based policy. SERC Discussion Papers (SERCDP155). Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.

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Abstract

This paper investigates the local labor market impact of a UK relocation initiative, the 2014 Lyons Review. The review resulted in the dispersal of about 25,000 civil service jobs out of London and the South East towards other UK destinations. The paper aims to detect whether inflows of public sector jobs have crowded out private sector activity or stimulated the local provision of jobs in the private sector. By separately estimating direct and spillover effects, I find that the relocation programme raised private sector employment in the receiving areas and changed the sectoral distribution of local employment towards services and away from manufacturing. I also find evidence of displacement. Employers seem to move out of areas at 1-2km distance to a relocation site and move into areas at 0-1km distance. These agglomeration effects appear highly localised: the largest policy impact is found in areas that received the relocated jobs and spillover effects reduce sharply over distance.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2015 The Author
Divisions: Spatial Economics Research Centre
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers
O - Economic Development, Technological Change, and Growth > O1 - Economic Development
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy
Sets: Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Date Deposited: 31 Jul 2014 07:57
Last Modified: 20 Feb 2019 03:51
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government
URI: http://eprints.lse.ac.uk/id/eprint/58530

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