Abstract
Evidence is accumulating which suggests that public employee pay levels may contain substantial rent components. The purpose of this study is twofold: to relate the theories of public choice and competitive rent seeking to this evidence and to improve upon existing estimates of rent levels by incorporating the effects of fringe benefits and stability of employment. This study concludes that once nonwage forms of compensation are included, economic rents are contained in pay levels at all three levels of government for both sexes.
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The authors wish to acknowledge their immense debt to Sharon Smith, who provided us with much of the data used in this study. The assistance of Betsy Rankin is also gratefully acknowledged. The authors alone, however, are responsible for the contents of this article.
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Bellante, D., Long, J. The political economy of the rent-seeking society: The case of public employees and their unions. Journal of Labor Research 2, 1–14 (1981). https://doi.org/10.1007/BF02685118
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DOI: https://doi.org/10.1007/BF02685118