Municipal Labour Demand Sweden 1988-1995 ‡

  title={Municipal Labour Demand Sweden 1988-1995 ‡},
  author={P{\aa}l Bergstr{\"o}m and M. L. Dahlberg and Eva Johansson},
In this paper we investigate the determinants of municipal labour demand in Sweden 1988-1995. Utilising a major grant reform in 1993, through which a switch from mainly targeted to mainly general central government grants occurred, we are able to identify which type of grants that have the largest effects on municipal employment. We find a larger municipal employment elasticity with respect to grants before the reform, implying that the more freedom given to the municipalities, the less they… CONTINUE READING


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