Resource Windfalls and Public Sector Employment: Evidence from Municipalities in Chile

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dc.contributor.authorLarrain, Felipe
dc.contributor.authorPerello, Oscar
dc.date.accessioned2025-01-23T21:15:16Z
dc.date.available2025-01-23T21:15:16Z
dc.date.issued2019
dc.description.abstractWe study the effect of extra resource revenues on employment expenditures at the municipal level in Chile. We exploit a novel quasi-experiment: a legal reform in 2005 that increased the portion of the income collected from mining licenses that is assigned to municipalities where mines operate from 30 to 50 percent. Our main result is a statistically significant expansion of municipal employment expenditures in mining municipalities, driven by expenditures on long-term employment. Additionally, we found a meaningful effect on allowances to the municipal council, but we did not find a robust impact on transfers to health, transfers to community programs, or municipal investment, while the increase in transfers to education is small with respect to the employment expenditures effect. These results are complemented by evidence of an increase in the mayor's probability of reelection not related to the provision of public goods, which links our findings with the clientelism mechanism of resource rents. Our results also have several implications for the fiscal decentralization debate in resource-abundant economies.
dc.fuente.origenWOS
dc.identifier.eissn1533-6239
dc.identifier.issn1529-7470
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/101077
dc.identifier.wosidWOS:000466565900005
dc.issue.numero2
dc.language.isoen
dc.pagina.final167
dc.pagina.inicio127
dc.revistaEconomia-journal of the latin american and caribbean economic association
dc.rightsacceso restringido
dc.subjectNatural resources
dc.subjectclientelism
dc.subjectmunicipalities
dc.subjectfiscal decentralization
dc.subject.ods09 Industry, Innovation and Infrastructure
dc.subject.ods01 No Poverty
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.ods10 Reduced Inequality
dc.subject.odspa09 Industria, innovación e infraestructura
dc.subject.odspa01 Fin de la pobreza
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.subject.odspa10 Reducción de las desigualdades
dc.titleResource Windfalls and Public Sector Employment: Evidence from Municipalities in Chile
dc.typeartículo
dc.volumen19
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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