The Effects of Fiscal Decentralisation on Publicly Provided Services and Labour Markets

• 成果类型: Article
• 署名作者: Bianchi, Nicola; Giorcelli, Michela; Martino, Enrica Maria
• 署名单位: Northwestern University; Northwestern University; National Bureau of Economic Research; University of California System; University of California Los Angeles; Center for Economic & Policy Research (CEPR)
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/uead022
• 发表日期: 2023
• 页码: 1738-1772
• 关键词: universal child-care; property taxation; GOVERNMENT

摘要

This paper studies how fiscal decentralisation affects labour supply. It explores a reform that increased the fiscal autonomy of Italian municipalities by replacing government transfers with revenues from a local property tax. Our identification leverages cross-municipal variation in the degree of decentralisation that stems from differences in the average age of buildings caused by World War II bombings. Decentralisation expanded municipal services, such as nursery schools, especially in areas with greater political competition. The paper then investigates how the reform affected labour markets. Decentralisation increased female labour supply-probably through expanded availability of nursery schools-thereby reducing the gender gap in employment.